Indian mobile carrier Aircel Ltd filed for bankruptcy on Wednesday as a result of $2.3 billion dollars worth of debt and mounting losses, the aftermath of a price war triggered by a telecom upstart, Reliance Jio, according to Reuters. The carrier has been unsuccessful in trying to restructure its debt and decided to pursue a resolution under the country’s Bankruptcy Code as the “appropriate recourse.”
Aircel is 74 percent owned by Malaysia’s Maxis Communications Bhd, and talks with Reliance Communications Ltd (RCom) to combine their wireless business ended in late 2017, due to regulatory complications.
“Post-detailed discussions with the financial lenders and shareholders, the company could not reach consensus with respect to restructuring of its debt and funding,” Aircel said in a statement.
March 9, 2018