The dedicated bankruptcy court has reserved for order the resolution plan for Aircel, whose proposed buyer is asset reconstruction firm UV Asset Reconstruction Company Ltd (UVARCL).
According to the resolution plan for bankrupt Aircel, the total realisation for financial creditors will be Rs 6,600 crore, against claims of about Rs 20,000 crore.
In the resolution plan mentioned in National Company Law Tribunal on Monday, this realisation 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.
If UVARCL fails to monetise the assets, then Aircel’s lenders get 76% of equity in telco, 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.
The telco’s spectrum bands, which are valid until 2026 except for Tamil Nadu, should evoke interest from the buyers planning to expand their 4G base but at about a 20-25% discount on the base price offered in last auction, say experts.
Source: The Economic Times, February 18, 2020