The National Company Law Tribunal (NCLT) has reportedly approved the insolvency resolution plan for Aircel that will see UV Asset Reconstruction Company Limited (UVARCL) take over the operator’s assets.
This marks the end of a two-year process that was the first of its kind in the telecom sector and will likely see among the lowest recoveries for lenders among major bankruptcy cases in India.
According to industry sources, while Aircel, owned by Malaysia’s Maxis, may have narrowly escaped liquidation, its financial creditors may recover only 10 per cent -15 per cent of the loans they extended.
UVARCL is set to take over the business as a going concern and run the smaller units such as the bulk SMS and enterprise divisions, according to the plan finalised in May 2019. The rest of the assets were to be sold with that money going to the lenders. At the time, recovery was estimated at 12-36 months.