Aircel may have to wind up operations, say analysts
Analysts feel shutting down the business using the bankruptcy route would invoke the bank guarantees of Aircel's Malaysian parent company Maxis.
November 07, 2017 / 11:24 AM IST
Telecom operator Aircel may have to wind up its operations due to the ongoing loses, high debt and scrapping of merger talks with Reliance Communications (RCom), a report by The Economic Times has suggested.
The merger talks with RCom had fallen apart after the Supreme Court barred Aircel from selling its 2G and 3G spectrum.
The newspaper cited multiple analysts who said the operator may try to structure a deal that could exclude the spectrum it owns. Aircel could sell other wireless assets and transfer around 89 million subscribers to a larger telecom player and sell 40,000 of its towers to a separate entity.
Aircel currently has a gross debt of Rs 20,000 crore and holds no 4G spectrum.
Analysts say shutting down the business using the bankruptcy route would invoke the bank guarantees of Maxis, its Malaysian parent company and could result into a legal battle.
The top court had earlier barred Aircel from selling its 2G and 3G spectrum and threatened to revoke Aircel's licences until representatives of Maxis appear before it.
Gurgaon-based telecom operator is currently trying to restructure its debt by shrinking its operations to focus on its stronger circles such as Tamil Nadu, the Northeast and Jammu & Kashmir.
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