Aircel Insolvency: Distributors Move NCLT Seeking Classification As Financial Or Operational Creditor
Aircel distributors on Tuesday filed an application in the National Company Law Tribunal seeking classification as a financial or operational creditor in the firm's insolvency matter.
More than 53 distributors, who have been classified as other creditors by the resolution professional of Aircel, sought to be classified either as financial or operational creditors. The distributors informed the tribunal that they had purchased vouchers and other products under the distributorship agreement, which was in force till February 2018.
Aircel did not deliver the products or return their payments, they added. Meanwhile, Indus Towers sought directions from the NCLT against the resolution professional, saying it is opposed to the resolution plan. The company claimed that Aircel, Aircel Cellular and other connected companies owe Indus Towers Rs 843 crore.
Further, Indus said it has filed a claim in this regard, however, the entire value was not admitted by the resolution professional. Therefore, Indus Towers said, it has objections with the resolution plan. The tribunal has kept both the matters for hearing next week.
Aircel and its subsidiaries Aircel Cellular and Dishnet Wireless together owe around Rs 50,000 crore to creditors. The combined liability of the firms towards financial creditors stands at Rs 15,545 crore and around Rs 35,000 crore to operational creditors. The telco's assets, including spectrum licenses, and fibre assets, are valued at around Rs 32,362 crore.
Aircel group had on Dec. 1, 2017, informed Telecom Regulatory Authority that it intended to surrender its entire license in Gujarat, Maharashtra, Haryana, Himachal, Madhya Pradesh, and Uttar Pradesh-West circles, following which the company shut services in these circles from Jan. 31, 2018. On Feb. 22, Aircel had informed TRAI that it was facing deep financial stress. Subsequently, TRAI asked it to give time to its subscribers to shift to other networks.