New Delhi: Billionaire T Ananda Krishnan's Aircel has filed for bankruptcy, pointing to its unsustainable debt and intense competition in the telecom sector due to what it called the "disruptive entry of a new player". The company filed the request on Wednesday in the Mumbai branch of National Company Law Tribunal (NCLT), the bankruptcy and insolvency resolution court.
A company statement said the board of directors acknowledged that the company faces troubled times in a highly financial stressed industry, intense competition, increased losses and a high level of unsustainable stress.
"This has caused significant negative business and reputational impact on the company," the statement said.
Wednesday's bankruptcy request comes weeks after the January 19 meeting with lenders where the company's promoters were asked to invest at least a billion dollars to enable the company to meet its financial obligations.
The Malaysian-owned Maxis company has a debt of over 16,000 crores taken from a consortium of banks led by State Bank of India.
Maxis, a holding company for some of Krishnan's telecom ventures, has made about $3.4 billion of shareholder advances to Aircel that it won't be able recoup, the report said.
A company statement said the board of directors acknowledged that the company faces troubled times in a highly financial stressed industry, intense competition, increased losses and a high level of unsustainable stress.
"This has caused significant negative business and reputational impact on the company," the statement said.
Wednesday's bankruptcy request comes weeks after the January 19 meeting with lenders where the company's promoters were asked to invest at least a billion dollars to enable the company to meet its financial obligations.
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The Malaysian-owned Maxis company has a debt of over 16,000 crores taken from a consortium of banks led by State Bank of India.
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Maxis, a holding company for some of Krishnan's telecom ventures, has made about $3.4 billion of shareholder advances to Aircel that it won't be able recoup, the report said.
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