NCLT Reserves Order On Aircel’s Resolution Plan
[ By Bobby Anthony ]The National Company Law Tribunal (NCLT) has reserved its order on the resolution plan for Aircel, whose proposed buyer is asset reconstruction firm UV Asset Reconstruction Company Ltd (UVARCL).According to the resolution plan for Aircel, the total realization for financial creditors will be Rs 6,600 crore, against claims of about Rs 20,000 crore.The realization will...
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The National Company Law Tribunal (NCLT) has reserved its order on the resolution plan for Aircel, whose proposed buyer is asset reconstruction firm UV Asset Reconstruction Company Ltd (UVARCL).
According to the resolution plan for Aircel, the total realization for financial creditors will be Rs 6,600 crore, against claims of about Rs 20,000 crore.
The realization 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 five years, according to the resolution plan mentioned in the NCLT recently.
However, if UVARCL fails to sell Aircel’s assets, its lenders will get 76% of equity in the bankrupt telecom company, lawyers said.
Aircel’s main asset is its spectrum. It holds spectrum in circles — Andhra Pradesh, Delhi, Karnataka, Mumbai, Rajasthan and Tamil Nadu in 900 MHz, 1800 MHz and 2100 MHz and along with its units, offered 2G and 3G services.
According to experts, its spectrum bands, which are valid until 2026, except for Tamil Nadu, are expected to evoke interest from buyers planning to expand their 4G base.
