US-based telco vehicle NII Holdings, which operates as Nextel, has emerged from Chapter 11 reorganisation proceedings, the company announced.
“This is an important day for NII Holdings and all of our creditors, employees and customers,” said NII…
US-based telco vehicle NII Holdings, which operates as Nextel, has emerged from Chapter 11 reorganisation proceedings, the company announced.
“This is an important day for NII Holdings and all of our creditors, employees and customers,” said NII Holdings CEO Steve Shindler. “Working through the reorganisation process has been challenging for all of our stakeholders, but we have emerged as a more streamlined and focused organisation with a strong balance sheet and a healthy liquidity position.
“We will concentrate our future investments in Brazil where we see a promising long-term growth opportunity, while remaining focused on reducing expenses and maintaining a lean cost structure. We believe this is the best long-term strategy to create value for our stakeholders.”
The company said it plans to fill a director vacancy in the coming weeks, having agreed to create a new, seven-strong board of directors.
Under the reorganisation plan, some 100 million shares of NII Holdings’ new common stock and US$745m in cash will be distributed to holders of senior notes issued by subsidiaries NII Capital Corp and NII International Telecom.
The company said it expects to list the new shares on the Nasdaq, under its former ticker ‘NIHD’. Shares of NII Holdings’ common stock outstanding at the time the bankruptcy proceedings commenced have been cancelled, and holders of those shares will receive no distributions under the plan.
In May, the holding company completed its sale of US$1.875bn Nextel Mexico to AT&T, which plans to merge the group with Iusacell, another local acquisition.
Nextel Brasil, for its part, has been linked to takeover interest by AT&T.
A spokesperson was not immediately available for comment.
