Aircel files for bankruptcy at the National Company Law Tribunal

Telecom company Aircel along with its units-Aircel Cellular and Dishnet Wireless, filed for bankruptcy at the National Company Law Tribunal (NCLT) on Wednesday. "Post detailed discussions with the financial lenders and shareholders, the company could not reach consensus with respect to restructuring of its debt and funding," said Aircel in its statement.
 
"Under current circumstances, especially after the 12 February 2018 RBI guidelines, the Company believes resolution process under the Code is an appropriate recourse," added the telecom operator in its statement.
 
Malaysian parent company Maxis, run by businessman Ananda Krishnan, had earlier proposed a cash infusion to support the debt-laden company, but has pulled the plug, said an Economic Times report citing a person familiar with the development. 
 
The company has reportedly been in negotiations with lenders since September, but has failed to hammer out a recast of its Rs 15,500 crore debt.  
 
Aircel shutting down will impact tower firms, vendors, distributors and 500 employees associated with the operator. 
 
“In these difficult times, the company seeks co-operation from all its stakeholders including the vendor fraternity and channel partners during the IBC process. The company requests continued services from the suppliers and partners for the ongoing business of the Company,” said Aircel.