Telecom operator Aircel said it has filed for bankruptcy as it has been facing "troubled times" in "highly financially stressed" industry. The filing was made in National Company Law Tribunal Mumbai.
It said intense competition following the disruptive entry of a new player, legal and regulatory challenges, high-level of unsustainable debt, and increased losses together caused significant "negative business and reputational impact"
Application filed under Insolvency and Bankruptcy Code
"The Board of Directors of the Corporate Debtor today announced that they have filed an application under Section 10 of the Insolvency and Bankruptcy Code 2016 for undertaking Corporate Insolvency Resolution Process for the respective companies: Aircel Cellular, Dishnet Wireless, Aircel," the official statement said.
CIRP, a process to find best possible resolution: Aircel
Aircel also said, "The Company would like to emphasize that CIRP is not a proceeding for liquidation, rather is a process to find best possible resolution for the current situation."
The telecom company added that such a resolution "would be in the best interest of everyone (vendors, distributors, employees, etc) to protect and preserve the value of the company and manage the operations."
Will strive to provide uninterrupted service, says company
Aircel said it believes that in the current circumstances, resolution process under the Insolvency and Bankruptcy Code is an "appropriate recourse". The telco said it will strive to provide uninterrupted service connectivity to its customers and sought their support in the "current difficult period".