Aircel poised to file for bankruptcy

20 Feb 2018

Indian mobile operator Aircel is poised to file for bankruptcy at the National Company Law Tribunal (NCLT), the Economic Times reports, citing two people with knowledge of the matter. The cellco’s board has been dissolved ahead of the move, the report adds, and the bankruptcy filing is likely to occur this week. Malaysian parent company Maxis had previously proposed a cash infusion to support the debt-laden company, but has now decided to ‘pull the plug’, the sources clarified. The company has been in negotiations with lenders since September 2017 but has failed to adequately restructure its debt.

TeleGeography’s GlobalComms Database notes that the stricken cellco agreed a merger deal with Reliance Communications (RCOM) in September 2016, but prolonged delays in securing permission for the tie-up eventually led to the collapse of the deal, some twelve months later.

India, Aircel, Maxis