Parent company comes to the rescue of bankrupt telco Aircel

Telecom operator Aircel received help from its parent company Maxis Communications of Rs 95 crore to clear immediate operational expenses and to pay salaries of around 5000 employees, according to a report in The Economic Times. reported Economic Times.

Maxis, headquartered in Malaysia, has been working closely with the bankrupt Aircel for emergency infusion of funds, a source told the paper. The infusion of funds is being done through Mauritius-based subsidiary Global Communication Service Holdings (GCSH).

GCSH said in a statement that it had infused funds to Aircel worth Rs 95 crore, for about a month and a half till the time an Interim Resolution Professional (IRP) is appointed by the National Company Law Tribunal (NCLT).

Aircel filed for bankruptcy in February with the NCLT and around 5000 employees of the company, along with security personnel and contract staff did not receive their dues. Aircel is scrambling to service a Rs 50,000 crore debt due to its falling revenue and non-existent cash flow while fighting aggressive competitors.