Facing 'troubled times', Aircel files for bankruptcy

NEW DELHI: Telecom operator

Aircel

has filed for bankruptcy as the company is facing troubled times in the highly financially stressed industry. The filing was made in National Company Law Tribunal (NCLT) Mumbai, news agency PTI reported citing sources. Significant negative business has impacted the firm due to unsustainable debt and increased losses, the company said.


"The Board of Directors of the Corporate Debtor today announced that they have filed an application under Section 10 of the Insolvency and Bankruptcy Code 2016 for undertaking Corporate Insolvency Resolution Process for the respective companies: Aircel Cellular, Dishnet Wireless, Aircel Ltd," Aircel said in a statement.

Aircel, which had earlier informed the telecom regulator about closing services in six other circles, last week approached TRAI highlighting the financial difficulties it is facing.

In its letter dated February 22, Aircel said it is undergoing "deep financial stress" and the recent reports that it may file for bankruptcy have created a "chaotic situation" with its subscribers, distributors and retailers and partners.

Aircel, in its letter to TRAI, also said it has been severely impacted by a major infrastructure provider shutting off as much as a third of its total sites in different circles or telecom service areas across the country.

"As an emergency measure, we are working out intra circle roaming arrangements with other telecom service providers to help our subscribers remain connected (keeping the criticality of mobile connectivity which is linked to a host of other essential services) and also that they may opt for porting if they choose to...," Aircel had said.

Aircel debt amounts to Rs 15,500 crore ($2.38 billion).

Read this story in Bengali (With PTI inputs)

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