MTN Nigeria has received an accommodating breather from its funders and suppliers, helping it avoid an imminent rights issue while it looks to trade and negotiate itself back to solvency.
MTN’s subsidiary in its most valuable market said on Friday it paid $173.2 million (R3.3 billion) to reduce its debt exposure to recurring foreign currency obligations, while it has obtained “the necessary accommodations” from lenders pertaining to the effect on its loan agreements of breaches of covenants.
The payment has reduced the company’s outstanding obligation to the dollar-denominated letters of credit obligations by 41.5% to $243.4 million during the three months to end-March.
South Africans need to be in the know if we want to create a prosperous future. News24 has kept the country informed for 25 years, and we’re about to enter a new chapter of fearless journalism. Join our free subscription trial to unlock this story and a world of news aimed to inform, empower, and inspire.