Telecom firm Aircel is planning to file for bankruptcy under the Insolvency and Bankruptcy Code (IBC), according to a report by CNBC-TV18.
Ericsson and others lenders had earlier had moved National Company Law Tribunal (NCLT) opposing the merger of Aircel and Reliance Communications, due to pending money, making it highly unlikely for the RCom-Aircel merger to go through.
The Supreme Court had already banned Aircel from trading and sharing its spectrum.
The Department of Telecom (DoT) had also opposed the merger citing the Supreme Court order.
Aircel, which is wholly owned subsidiary of Maxis, has a total debt of Rs 16,000 crore out of which Rs 12,000 crore is Indian debt.
As per the Reserve Bank of India (RBI) norms under IBC, the banks will have to provide for at least Rs 6,000 crore by the end of September.
The State Bank of India (SBI) is the leading lender along with Punjab National Bank (PNB), Bank of Baroda, Canara Bank and Syndicate Bank, among others have exposure to Aircel.
The company however, denied filing for bankruptcy, according to a report in The Economic Times.
“It is business as usual at Aircel. The company denies any move to file for bankruptcy under the Insolvency Act,” Aircel spokesperson said.