Smile Telecoms Group has announced that it has launched a restructuring plan under Part 26A of the UK Companies Act 2006 (the “Restructuring Plan”) on 15 December 2021, with the English court sanction hearing due to take place at the end of February.
A statement signed by Ms Nicolene van Zyl, Group Head, Corporate Communications and Marketing, stated that the recapitalisation to be implemented via the Restructuring Plan (the “Restructuring”) will strengthen and provide new funding to the business to allow Smile Telecoms Group to safeguard its operations and deliver its commercial objectives.
In addition to the $63.6 million injected into Smile Telecoms Holdings Limited by its Super Senior funder in 2020 and 2021, the Restructuring will provide up to $35.6 million of new money to fund the business in 2022.
The Group is targeting completion of the Restructuring as soon as possible, and in any event on or before 31 May 2022, and will continue working with key stakeholders to complete the Restructuring.
The Company, noted the statement by Ms Nicolene van Zyl, would like to thank all of its stakeholders for their patience and continued support as it continues to work towards effecting the Restructuring to strengthen and stabilise its business, secure countless jobs and provide a better outcome to all of its stakeholders than what would be available to them in the relevant alternative to the Restructuring Plan.
The Company would also like to assure its stakeholders the Restructuring Plan will once implemented, strengthen the Group’s business, and it is business as usual for the Group. Arrangements with business-critical service providers and suppliers are not in any way affected by the Restructuring Plan or proposed Restructuring.