Debt-laden Aircel to file for bankruptcy at the National Company Law Tribunal

Telecom major Aircel will shortly file for bankruptcy at the National Company Law Tribunal (NCLT) and its board has been dissolved ahead of the move, said two people aware of the matter. 

Malaysian parent company Maxis, run by businessman Ananda Krishnan, had earlier proposed a cash infusion to support the debt-laden company but has backed out from making any infusion into the entity, said the ET report citing a person close with the development.  

Economic Times said the company has been in negotiations with lenders since September, but has failed to hammer out a recast of its Rs 15,500 crore debt. 

 “There is no cash to run the business and no visibility to free any more up,” said another person to ET, adding that the company is likely to stop paying salaries by the end of the week.