Debt-laden Aircel to file for bankruptcy at NCLT
Malaysian parent company Maxis, run by businessman Ananda Krishnan, had earlier proposed a cash infusion to support the debt-laden company.
Telecom company Aircel will shortly file for bankruptcy at the National Company Law Tribunal (NCLT) and its board has been dissolved ahead of the move, said two people aware of the matter.
This will mark the demise of the last small mobile phone company, leaving just four main non-state ones —soon to be three after a merger, reports ET.
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 the ET report citing a person familiar with the development.
ET said the company has been in negotiations with lenders since September, but has failed to hammer out a recast of its Rs 15,500 crore debt.
“There is no cash to run the business and no visibility to free any more up,” said another person to ET, adding that the company is likely to stop paying salaries by the end of the week.