February 28,2018:
Aircel has debts amounting to Rs 15,500 crore ($2.38 billion).
Telecom Operator Aircel has filed for Bankruptcy as the company is facing troubled times in the highly financially stressed industry.
Filing was made in the National Company Law Tribunal (NCLT),Mumbai.
Company in its statement stated that,"Significant negative business has impacted the firm due to the unsustainable debt and increased losses".
It further stated that,"Board of Directors of Corporate Debtor today announced that they have filed an application under Section 10 of the Insolvency and Bankruptcy Code 2016 for undertaking Corporate Insolvency Resolution Process for the respective companies: Aircel Cellular, Dishnet Wireless, Aircel Ltd," Aircel said in a statement.
Aircel, which had earlier informed the TRAI about closing services in six other circles, highlighting the financial difficulties it is facing.
In its letter dated February 22,2018 Aircel said it is undergoing "deep financial stress" and the recent reports that it may file for bankruptcy have created a "chaotic situation" with its subscribers, distributors and retailers and partners.
Aircel, in its letter to TRAI, had also stated that it has been severely impacted by a major infrastructure provider shutting off as much as a third of its total sites in different circles or telecom service areas across the country.
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