Aircel Looking to Monetise Assets Besides Spectrum, Report

Aircel, a former Indian telecom operator, filed for bankruptcy in 2018, is now looking to monetise its assets other than spectrum. The operator will consider appealing for the same at the dedicated bankruptcy court. Aircel wants to monetise its non-spectrum assets for paying salaries to its employees and maintain assets until the time its legal tussle with the telecom department is over. The company will transfer the money realised from assets sale to an escrow account through which it will pay salaries to around 200 employees and carry out other necessary expenses — more details on the story ahead.

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Aircel’s Assets Dip by 50% in Value Because of Regulatory Delays

Aircel is in a tight financial situation. The company has already delayed in paying salaries to its employees, and the regulatory delays are not helping. As per an ET Telecom report, an executive said that even after the court order last year, the monetisation hasn’t happened because of regulatory delays. It has further resulted in a reduction in the value of the company’s assets by up to 50%.

The court order being referred to here is the one that came from the National Company Law Tribunal (NCLT) in June 2020. The order gave permission to the UV Asset Reconstruction Company (UVARCL) for purchasing Aircel and its two units for 74% stake. UVARCL then had to pay off around Rs 6,630 crore to the company’s financial creditors in the next five years.