NCLT approves Aircel resolution plan even as ARC offers only 1.5% of Rs 20,000 crore bank dues: Report
Aircel had submitted an application under Section 10 of the IBC in February 2018 after it failed to repay loans
June 10, 2020 / 02:38 PM IST
The National Company Law Tribunal (NCLT) has approved a resolution plan for Aircel submitted by UV Asset Reconstruction Company (UVARCL). The ARC has offered 1.5 percent of Aircel's Rs 20,000 crore worth bank dues, Business Standard reported.
Moneycontrol could not independently verify the report.
Deloitte is the resolution professional (RP) for the case.
Aircel had submitted an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) in February 2018 after it failed to repay loans. It cited the troubles in the industry, high losses, intense competition, legal challenges and regulatory hurdles and unsustainable debt as reasons.
The company’s spectrum worth Rs 1,100-2,000 crore is valid till 2026 in Delhi, Rajasthan, Mumbai, Karnataka and Andhra Pradesh. It also has an optic fibre network of 14,500 km across India.
Promoted by six public sector banks and two insurance companies (Allahabad Bank, Bank of India, Bank of Maharashtra, Central Bank of India, Union Bank of India, United Bank of India, National Insurance and United India Insurance) via equity, UVARCL made the proposal in February 2020.
However, all may not be smooth sailing as the Department of Telecommunications (DoT), which has its own pending claims worth Rs 10,000 crore with the company, is expected to oppose the move. The RP has approved Rs 2,000 crore of this claim.