Aircel to soon file for bankruptcy before the NCLT
Aircel is soon expected to file for bankruptcy before the National Company Law Tribunal (NCLT). In addition, the company’s board has reportedly been dissolved ahead of the move to file for bankruptcy.
Malaysia based Maxis, Aircel’s parent company had earlier proposed a cash infusion for the revival of the debt-laden telecom operator but has decided against the idea. Besides, Aircel has been in negotiations with lenders since September 2017 but has failed to outline a plan to recast a total of Rs 155 billion of debt.
The decision to file for insolvency was expedited by the Reserve Bank of India’s scrapping of all debt revamp schemes in favour of the Insolvency and Bankruptcy Code in a bid to hasten debt resolution.
