US-based operator NII Holdings, which operates under the Nextel brand in Brazil and Argentina, has announced that it has successfully emerged from its Chapter 11 reorganisation proceedings. ‘This is an important day for NII Holdings and all of our creditors, employees and customers. Working through the reorganisation process has been challenging for all of our stakeholders, but we have emerged as a more streamlined and focused organisation with a strong balance sheet and a healthy liquidity position,’ said Steve Shindler, NII Holdings’ CEO, adding: ‘We will concentrate our future investments in Brazil where we see a promising long-term growth opportunity, while remaining focused on reducing expenses and maintaining a lean cost structure. We believe this is the best long-term strategy to create value for our stakeholders.’ NII Holdings filed for relief under Chapter 11 of the Bankruptcy Code in a New York court in September 2014, and in April the company completed the sale of its Mexican operations to AT&T for an aggregate purchase price of USD1.875 billion.
Under the plan, approximately 100 million shares of NII Holdings’ new common stock and USD745 million in cash will be distributed to holders of senior notes issued by the company’s subsidiaries, NII Capital Corp and NII International Telecom. The Company has applied to list the shares of NII Holdings’ new common stock on the NASDAQ Stock Exchange; pending the completion of this listing process, the shares of NII Holdings are expected to be traded on the over-the-counter (OTC) market. Shares of NII Holdings’ common stock outstanding at the time the bankruptcy proceedings commenced have been cancelled, and holders of those shares will receive no distributions under the plan.