The dedicated bankruptcy court has reserved for order the resolution plan for Aircel, whose proposed buyer is asset reconstruction firm UV Asset Reconstruction Company Ltd. (UVARCL)
According to the resolution plan for bankrupt Aircel, the total realisation for financial creditors will be Rs 6,600 crore, against claims of about Rs 20,000 crore.
In the resolution plan mentioned in National Company Law Tribunal (NCLT) on Monday, this realisation will happen when UVARCL manages to sell Aircel’s assets. There will be no upfront payment made to the lenders but they will get zero optionally convertible debentures spread over a period of 5 years.
If UVARCL fails to monetise the assets, then Aircel’s lenders get 76% of equity in telco.
Aircel’s main asset is its spectrum. It holds spectrum in circles – Andhra Pradesh, Delhi, Karnataka, Mumbai, Rajasthan and Tamil Nadu in in 900 Mhz, 1800 Mhz and 2100 Mhz and along with its units, offered 2G and 3G services.
The telco’s spectrum bands, which are valid until 2026 except for Tamil Nadu, should evoke interest from the buyers planning to expand their 4G base but at about a 20-25% discount on the base price offered in last auction, say experts. Aircel has previously told the National Company Law Tribunal (NCLT) that its spectrum is worth Rs 1,100-2,000 crore.
Aircel filed for bankruptcy in early 2018 weighed under a debt of Rs 26,000 crore.
The telco faced claims worth Rs 20,000 crore from lenders and that for a similar amount from operational creditors. Deloitte, its RP, held the reins for almost two years and the operator has waged battles against telecom department, vendors and is now in the final stage of resolution.
Source- Economic Times.