The country’s sixth largest telecom operator Aircel along with its units – Aircel Cellular and Dishnet Wireless – on Wednesday filed for bankruptcy in the National Companies Law Tribunal (NCLT) in Mumbai due to fierce competition and high levels of debt. This is the fourth telecom firm to wind up after billionaire Mukesh Ambani-led Reliance Jio debuted in September 2016, unleashing a disruptive price war in the sector with its free voice calls and dirt-cheap data. In a press release on social networking site Facebook aircel stated that, “The Company would like to emphasize that CIRP is not a proceeding for liquidation, rather is a process to find best possible resolution for the current situation and that would be in the best interest of everyone (vendors, lenders, distributors, employees, promoters, govt. etc.) to protect and preserve the value of the Company and manage the operations.
Post detailed discussions with the financial lenders and shareholders, the Company could not reach consensus with respect to restructuring of its debt and funding. Under current circumstances, especially after the 12 February 2018 RBI guideline, the Company believes resolution process under the Code is an appropriate recourse.
In these difficult times, the Company seeks co-operation from all its stakeholders including the vendor fraternity and channel partners during the IBC process. Company solicits supportive positive behaviour from the press and media to sail thru difficult times. Approach of media fraternity shall be the deciding factor to keep the company running and find alternative solutions which would definitely be in the best interest of all the stakeholders whose bread and butter lies in and with the company and larger interest of the telecom sector and nation as a whole. The Company requests continued services from the suppliers and partners for the on-going business of the Company
The Company 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.
With that as background, the Company appreciates the long-standing relationships with its customers, lenders, employees, channel partners and suppliers, and requests their co-operation towards the success of the efforts to find a resolution under the IBC process. Further, the Company requests the stakeholders to keep themselves aware of the communications and notices in respect of the Company, including any public notices, or advertisements given from time to time. IRP (Interim Resolution Process) is not the end. This should only be taken as a beginning of our great future ahead.”