Aircel’s lenders approve UVARCL proposal to acquire the insolvent telco

Aircel’s lenders have approved a proposal of UV Asset Reconstruction Company (UVARCL) to take over the bankrupt operator. The financial creditors are likely to recover only 15-20 per cent of loans they had extended to Aircel, indicating a sharp haircut. UVARCL has offered Rs 1.5 billion upfront and additional proceeds from the successful running of the bulk SMS and enterprise businesses. The asset reconstruction company will take the business as a going concern and run the smaller businesses like bulk SMS and enterprise. The rest of the assets will be sold and that money too will go to the lenders. The recovery will take 12-36 months.