Aircel, Files for Bankruptcy

Aircel and its two units filed for bankruptcy in the National Company Law Tribunal has crackdowned on a large loan defaulters. As there is no option of getting funding of Rs.15,500 crore, leaving resolution under the Insolvency & Bankruptcy Code is the only option

In a statement the company, majority-owned by Malaysia’s Maxis said that an agreement could be reached and current situation,after the 12 February 2018 RBI guidelines, the company believes that the resolution process under the Code is an appropriate recourse.

It is also said that Aircel is the first major company to initiate bankruptcy on its own. February 19 edition, Aircel would file for bankruptcy was the first report.

An interim resolution professional will be appointed if NCLT accepts Aircel’s request, who will then find a way for funding or buyers to repay lenders. If they don’t agree then it will be declared bankrupt.