With a high debt of Rs 200 billion, Aircel is likely to go in for a corporate debt restructuring. The operator is expected to initiate talks with banks for debt recast.
The Malyasia-based Maxis Communications owns 74 per cent stake in Aircel and the Reddy?s (the proprietor of Apollo Hospitals Group) own 26 per cent stake.
In 2009, Aircel had raised Rs 143 billion in debt for expanding operations. The State Bank of India had advanced about
Rs 100 billion crore, and the rest of the amount was offered by Standard Chartered.
In 2010, the operator took another loan of about Rs 20 billion and restructured its short-term loans worth Rs 110 billion into a long-term debt of about Rs 130 billion. Further, in 2010 Aircel paid about Rs 65 billion for 3G spectrum licences in 13 circles and about Rs 38 billion for broadband wireless access spectrum licences in eight circles. These fees have contributed to the company?s high debt.
In 2012, there was news related to Aircel exploring the option of equity sale to a number of players, including Sistema Shyam TeleServices Limited. However, in November 2012, the government announced a policy wherein a company acquiring an existing operator will have to pay the government the market price of the spectrum. Though both SSTL and Aircel denied having any plans of striking a deal, had SSTL gone ahead with the acquisition, it would have paid about Rs 140 billion for acquiring 4.4 MHz of spectrum held by Aircel.
