JK News Today
Telecom operator Aircel has filed for bankruptcy in the National Company Law Tribunal (NCLT) Mumbai, sources have told CNBC-TV18.
Aircel is likely to have filed for bankruptcy a short while ago, the report states. The report adds that Aircel’s lenders met in Delhi and gave nod to the terms and conditions.
Aircel’s lead banker is the State Bank of India. Aircel’s debt stands at around Rs 19,000 crore.
Build up to bankruptcy: Aircel had earlier proposed a cash infusion but did not go ahead with the plan, a source told the newspaper. The decision was triggered by the Reserve Bank of India scrapping all debt revamp schemes in favour of the Insolvency and Bankruptcy Code. Banks cannot restructure Aircel without provisioning for its debt since the company has not made payments since September.
Earlier this month, Idea Cellular had suspended interconnect services with Aircel over non-payment of dues.
Aircel, owned by Malaysian company Maxis, has been in debt since its failed merger with Reliance Communications’ wireless business. The merger had failed due to regulatory hurdles and the Supreme Court preventing sale of Aircel’s spectrum.
