Indian mobile operator Aircel has appointed SBI Capital to partly refinance or restructure Rs195bn (US$3.5bn) worth of loans, according to Business Standard citing banking sources.
The loans were secured a few years ago to build Aircel’s network and…
Indian mobile operator Aircel has appointed SBI Capital to partly refinance or restructure Rs195bn (US$3.5bn) worth of loans, according to Business Standard citing banking sources.
The loans were secured a few years ago to build Aircel’s network and buy 3G and 4G spectrum. Aircel, which has been facing financial difficulties, delayed the launch of 4G services late last year, the newspaper wrote.
First reports that Aircel’s lenders were exploring options to turn the company around emerged several weeks ago.
These options include a merger with rival Tata Docomo. However, the carrier’s owners – India’s Tata Group and Japan’s NTT Docomo – are said to be reluctant to take on Aircel’s debt.
The other option to prevent the operator from defaulting is an equity infusion from Malaysian parent company Maxis.
According to an assessment from Booz Allen, cited by the Economic Times in early May, Aircel needs approximately US$4bn which could be raised through newly-issued shares, fresh debt, and the sale of its BWA spectrum.
Aircel, which is the seventh-biggest carrier in India, did not immediately respond to requests for comment.
