UPDATE The net effect of Aircel’s bankruptcy in February, on American Tower Corporation (AMT) may be as much as $140 million, according to Zee Business. Aircel was a major carrier in India and a prominent part of American Tower’s tenant base in that country.
An analysis by India’s Central Bureau of Investigation detailed the towerco’s exposure to the carrier, which is still in the process of filing bankruptcy and months away from that completion.
American Tower Corp said in a U.S. regulatory document filed on Wednesday: “The company performed an impairment test based on current expectations of the impact of the bankruptcy on projected cash flows for assets related to Aircel. These assets consisted primarily of towers, which are assessed on an individual basis, network location intangibles, which relate directly to towers, and tenant-related intangibles. As a result, an impairment of $40.1 million was taken on the tower and network intangible assets. The company also fully impaired the tenant-related intangible asset for Aircel, which resulted in an impairment of $107.3 million during the three months ended March 31, 2018.”
Zee Business reported these impairments were recorded in ‘other operating expenses’ in the consolidated statements of operations of AMT. Given Aircel’s recent bankruptcy announcement in India, AMT has also raised its churn expectations for the market in 2018, accelerating the timing of a certain churn they had previously anticipated to occur over the next several years, according to the outlet.
May 7, 2018
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