MUMBAI: Debt-laden telecom operator Aircel on Monday approached the Mumbai bench of the National Company Law Tribunal (NCLT) to initiate bankruptcy proceedings. The company, with a debt of over Rs 50,000 crore, has asked for the appointment of an interim resolution professional (IRP).
Janak Dwarkadas, senior counsel, representing Aircel, told the Mumbai bench that the company’s debt to the tune of Rs 15,000 crore was due to financial creditors, while the remaining Rs 35,000 crore was due to operational creditors.Pointing out that the company wants to continue essential services and there are around 6,000 employees who haven’t got their dues for February, the senior counsel sought urgent hearing of the case. The court will hear the petition on March 8.
If the court accepts Aircel’s bankruptcy plea, the company would be then placed under an insolvency resolution professional, who will have a maximum of 270 days to work out a repayment plan.
If it fails to come out with a plan, the company will be subjected to liquidation for the repayment of dues. Aircel had initiated the process to file for bankruptcy on February 28.
The Chennai-based operator, with a majority stake owned by Malaysia’s Maxis, is the latest telecom player to struggle against the ongoing tariff war which was sparked by the arrival of Reliance Jio in September 2016. The company’s employees and distributers have started worrying about salary and compensation on unsold inventory.