According to sources after failing to find a path forward with its shareholders and lenders, small private telecom company Aircel, along with its units has filed for bankruptcy in the National Companies Law Tribunal (NCLT), Mumbai and sources have added that Aircel had been struggling with severe financial crisis and was looking various options for the company, including holding talks with all stakeholders including lenders.
Aircel is owned by Malaysia based Maxis; Aircel has a debt of Rs 15,500 crore and was unable to find a way to recast this. Making matters worse, its parent company also backed out of infusing funds into the struggling telecom player. Meanwhile according to a report Aircel shutting down will impact tower firms, vendors, distributors and 500 employees associated with the operator.
Earlier in January, Aircel shut its services in six
circles to focus on its better performing ones. Furthermore Aircel is not the
only one to bear the brunt of Reliance jio’s telecom foray. Reliance
communications shut operations and is selling its wireless assets to Jio.
Norway based Telenor is merging operations with Airtel. Idea and Vodafone too,
are in the process of merging operations after facing severe drop in revenues.
