Unrest is brewing at bankrupt Aircel, where there’s been no sign of progress on selling assets as the insolvency resolution process passes the midway stage, prompting fears the company may be headed for liquidation.
At a meeting last week, lenders rejected proposals to sell the telco’s optic fibre network and scrap and to pay a part of already-delayed salaries. The meeting called by Deloitte’s Vijaykumar V Iyer, the interim resolution professional, was attended by Aircel’s senior management and lenders State Bank of India, Bank of Baroda and Punjab National Bank.
The banks were not forthcoming with their approvals, according to people who were present at the meeting.
The lenders also did not grant their consent to the proposal to roll out 15 days of April salaries for about 3,000 employees who have not been paid since March.
“The situation is very grim since only few days are left and there is no sign of any asset sale. Questions are being raised if enough is being done for the asset monetisation programme,” said an executive who was present at the meeting. Emails to SBI, Aircel and Deloitte seeking comment on the matter remained unanswered.
Aircel is burdened with debt of some Rs 50,000 crore, of which Rs 19,000 crore is owed to financial lenders.
The interim resolution professional has the reins of Aircel for an initial 180 days, of which about 90 have passed. An extension of 90 more days can be sought and if there is still no resolution, the company goes into liquidation.
The National Company Law Tribunal admitted Aircel’s plea for bankruptcy protection on March 8. While accepting pleas of Aircel and its units Dishnet Wireless and Aircel Cellular, the tribunal noted the enterprise business, along with spectrum, towers, fibre and other assets worth Rs 32,000 crore could help revive the telco.
Source: Economic Times