Cell C interim CEO Douglas Craigie Stevenson has published an open letter detailing how the company will implement a new business plan to improve its current position.

The news comes two weeks after S&P Global Ratings announced that it had lowered its rating on Cell C to SD (selective default) from CCC.

Stevenson said that company faces financial and other challenges, and will implement a new business plan which will simplify its business model.

Cell C will also:

Pursue a recapitalisation to optimise the capital structure.

Extract greater value from its roaming agreement.

Optimise network revenue and usage.

“The goal for Cell C is to become significantly better focused on operational performance, sound business ethics and accountability throughout the business,” said Stevenson.

“The company continues to face real challenges and we are in active discussions with our stakeholders with a view to achieving a secure financial position.”

Investigations and cost-cutting

Stevenson said that Cell C has also appointed Deloitte as independent financial restructuring advisors, and Bowmans attorneys to “investigate any parts of the business where we suspect that there may be irregular business practices”.

PwC has also been hired to conduct a full procurement audit and review of the company’s processes.

“We have implemented significant austerity measures and have cut costs which do not contribute to revenue generating activities, including a review of all contracts to ensure alignment with business priorities and a hiring freeze,” he added.

“I want to emphasise that Cell C is strategically positioning itself and we are using our best efforts to be a strong participant in the industry, I firmly believe we are on the right track.”

The full letter is provided below.