Aircel Phones fall Silent, Company files for bankrupt
The Aircel has failed its customers as their is no connectivity in whole region from the past ten days.
The people especially in rural areas where they use a single sim are suffering
Moreover there are large number of people associated with direct business of recharge. They have been deprived of their livelihood . They have lost whatever they had invested, one such business man said.
Today shopkeepers alleging a huge scam registered protest and sought probe into the matter.
They have sought restoration of service for at least a month so that balance left in retailer’s sims is utilized.
Aircel files for bankruptcy after being ‘highly financially stressed’
Telecom operator Aircel said it has filed for bankruptcy as the company has been facing “troubled times” in “highly financially stressed” industry.
In a statement here, Aircel said that intense competition following the disruptive entry of a new player, legal and regulatory challenges, high level of unsustainable debt and increased losses had together caused significant “negative business and reputational impact” on the company.
“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,” the statement said.
Aircel, whose debt amounts to 155 billion rupees ($2.38 billion), then tried unsuccessfully to restructure its debt.
“Post-detailed discussions with the financial lenders and shareholders, the company could not reach consensus with respect to restructuring of its debt and funding,” Aircel said in a statement.
Aircel said it had decided to pursue a resolution under the country’s Bankruptcy Code as the “appropriate recourse.”
The entry of Reliance Jio in 2016 with free voice and cut-price data plans forced smaller operators to exit the crowded and competitive telecoms market, while bigger players such as Idea Cellular and Vodafone Group Plc’s Indian unit are merging to stave off competition.
The company statement also noted that efforts to merge wireless business with another operator did not yield any results and had ultimately lapsed in September 2017.
“Post detailed discussions with the financial lenders and shareholders, the company could not reach consensus with respect to the restructuring of its debt and funding.
Despite these discussions and the invoking of a Strategic Debt Restructuring scheme in January 2018, no agreement could be reached,” Aircel said.
The company also said it believes that in the current circumstances, resolution process under the Insolvency and Bankruptcy Code is an “appropriate recourse”.
“The Company would like to emphasise that CIRP is not a proceeding for liquidation, rather is a process to find best possible resolution for the current situation and that would be in the best interest of everyone (vendors, distributors, employees, etc) to protect and preserve the value of the company and manage the operations,” it added.
Aircel said it will strive to provide uninterrupted service connectivity to its customers and sought their support in the “current difficult period”.