Resignation compounds Cellular Towers’ woes

Africa Cellular Towers, the troubled provider of telecommunication infrastructure has announced that its executive director, Nick van der Mescht has resigned, effective immediately.

Earlier this week, the company said it had received two applications for liquidation and was imminently expecting a third liquidation application from a major creditor.

“At this point in time, the board is considering all its options with the possibility existing that it will not oppose the liquidation applications.

Accordingly, the company has requested the JSE to suspend trading in its securities with immediate effect,” ATR said.

“The Board wishes to thank Nick for his input and contribution to the board during his tenure with the company and wish him success for the future.

On 16 May, Africa Cellular Towers, said it reached an agreement for the restructuring of funding from the Industrial Development Corporation (IDC).

However, it also noted that a creditor served a liquidation application against the group on 14 May 2012.

“The company is seeking legal advice in regard to these proceedings and a further announcement will be made in this regard,” it said in a statement.

“Shareholders are advised that agreement in principle was reached between the company and the IDC in terms of which the IDC would restructure its funding line of R99 million subject to certain conditions precedent and more specifically that the company secure an equity partner to underwrite a rights issue,”  ACT added.

The company said it has received a letter of intent from a funder to underwrite a rights offer to the extent of R7.5million and the final decision by the IDC Credit Committee regarding the restructuring of its funding is expected by 25 May 2012.

“If successfully concluded, the restructuring will provide the company with additional working capital of R51 million,” it said.

The directors of Africa Cellular Towers added that the group was considering the implementation of a rights offer after the finalisation of the restructuring of the IDC funding.

Related articles

Africa Cellular Towers makes funding headway

ACTowers in battle for funding

Must Read

Partner Content

Show comments

Trending Now

Follow Us

Resignation compounds Cellular Towers’ woes