AIRCEL is shutting down its operations totally, as it is facing high financial crisis. Telecom giant Aircel on Wednesday said it has filed for bankruptcy as the firm was “facing troubled times in highly financially stressed industry”.
In an official statement, the company said that unsustainable debt has impacted its reputation. “Significant negative business and reputational impact on the company due to unsustainable debt and increased losses,” said the statement.
“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 Ltd,” Aircel said in a statement. The filing was made in National Company Law Tribunal (NCLT) Mumbai. The company statement also noted that efforts to merge wireless business with another operator did not yield any results and had ultimately lapsed in September 2017.
Aircel due to its financial crunch, the debt amounts to Rs 15,500 crore ($2.38 billion)
The Telecom Regulatory Authority- TRAI has instructed Aircel to do alternative arrangements for its customers and ensure they are given ample time to port their existing numbers to other service providers.