Aircel Files for Bankruptcy, Huge Debt and Heated Competition to Blame
Aircel has today filed for bankruptcy, in what appears to be a example of a business firm breaking under intense contest and mismanaging its finances. According to a written report from CNBC, the operator has filed the application with the Mumbai National Visitor Law Tribunal (NCLT) citing intense competition and a staggering debt of approximately Rs. xix,000 crore owed to SBI.
"The Board of Directors acknowledged that it has been facing troubled times in a highly financially stressed industry, owing to intense competition following the disruptive entry of a new role player, legal and regulatory challenges, loftier level of unsustainable debt and increased losses", said Aircel's official press release.
Sources say Aircel files for bankruptcy in Mumbai NCLT
Alert: @Aircel's lead banker is SBI, and its debt stands at around Rs 19,000 Cr picture show.twitter.com/TBzp0fVczQ— CNBC-TV18 (@CNBCTV18Live) February 28, 2018
In that location is no uncertainty that Reliance Jio is the new player existence talked most here, whose entry sparked a cost war in the industry and led to a dramatic fall in service rates and tariff charges. Aircel's executives reportedly finalized the decision to file for bankruptcy 'a curt while agone', after a coming together in Delhi where lenders agreed to the terms and conditions.
As per Aircel's press release, failure of a planned merger with another telecom operator and lack of general consensus regarding the company'due south restructuring of its finances led to the difficult determination. The operator has filed an application under Department 10 ofInsolvency and Bankruptcy Code (2016) to kickoff the Corporate Insolvency Resolution Process for iii companies viz. Aircel Cellular Limited, Dishnet Wireless Limited andAircel Limited.
Regarding the move's impact on the services offered past the firm, Aircel's printing release said,"The Visitor would like to communicate to all the customers that it would strive hard to provide uninterrupted service connectivity to them and appeals to them for their support during the current difficult period."However, Aircel has antiseptic that it is not liquidating its avails only is just trying to resolve the existing situation to ensure that the interests of its employees, business organisation partners, and customers are not put into jeopardy.
Source: https://beebom.com/aircel-files-bankruptsy/
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