Aircel files for bankruptcy with National Company Law Tribunal

Aircel has filed for bankruptcy in the National Company Law Tribunal (NCLT), Mumbai bench. This final resort was taken when the Malaysian-owned Maxis Communications failed to strike any agreement with its lenders and shareholders. It has been learnt that Aircel’s lenders, led by SBI, gave final approval to the terms and conditions to file for bankruptcy. Currently, Aircel’s debt reportedly stands at around Rs 155 billion. Earlier, Aircel had proposed a cash infusion but did not go ahead with the plan. The decision was triggered by the Reserve Bank of India (RBI) scrapping all debt revamp schemes in favour of the Insolvency and Bankruptcy Code. Banks cannot restructure Aircel without provisioning for its debt since the company has not made payments since September 2017.

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