The troubled telecom company Aircel is on the downward spiral, with many of its offices already shut down and many in the process, due to delay or non-payment of office rents and electricity bills, reports the Economic Times.
More than 5,000 employees of Aircel are waiting for their salaries due for the past two months in various regions the company was operational in.
A source at the executive level in the company told ET, “It is definite that the offices are shutting down. We have requested our landowner to give us a floor to take care of operations in the interim. However, because of the dues, we are being asked to clear out.”
Many employees could smell trouble when they came to know that their insurance covers were not renewed by the company. Top executives such as national head of operations Vipul Saurabh and chief marketing officer Anupam Vasudev quit last month, also hinting at an uncertain future.
Insolvency professional for the telecom operator, Vijaykumar V Iyer, in a letter to the employees told them that an external party will be brought in to provide funds to clear salary dues that have piled up till February end.
“As you are aware we have been in detailed discussions with an external party to provide us funds to make to you payment of your wages and salaries up to February 28. These discussions have proceeded at pace... I anticipate being able to shortly confirm you that the necessary legal formalities have been completed (for all three companies) and that the funds are being transferred to me for onward payment to each of you. I will confirm directly to you once the funds have been received and the anticipated payment date,” the letter read.
Iyer also said that Aircel has begun negotiations with “interim finance providers” and telecom operators for intra-circle roaming (ICR) arrangements.
As part of ICR deals, Aircel will be able to latch on to other telecoms for network. Iyer clarified in the letter, “if it is not possible to restart the network and operations are wound down, any wages and salaries will be classified under the law as insolvency resolution process costs, and you will get these in advance of any creditor or other claims once company assets are sold.”
Telecom Minister Manoj Sinha has promised the company all the help possible, to get out of this fix.