GSM telecom operator Aircel Friday denied a report and said that it had no plans to file for bankruptcy.
“It is business as usual at Aircel. The company denies any move to file for bankruptcy under the Insolvency Act,” Aircel spokesperson said.
The statement comes following a news report saying Aircel is likely to file bankruptcy under the Insolvency & Bankruptcy Code and the move might impact the proposed merger between Aircel and Anil Ambani-led Reliance Communications.
Shares of Reliance Communications cracked over 4.87%.
Notably, Swedish telecom gear maker Ericsson has also moved to NCLT against Reliance Communication. The Supreme Court has already banned Aircel from trading and sharing spectrum.
Aircel’s total debt stood at Rs 16,000 crore, which includes Rs 12,000 crore of India debt. The entire share capital of Aircel owned by Maxis Malaysia is pledged with a consortium of SBI-led banks.
RCom, on the other hand, is currently restructuring debt under which banks aren’t collecting interest payments till December. After that, however, creditors hold the rights to file for the company’s liquidation or convert their debt to shares to take control of the mobile service operator.
Source: Economic Times