Lenders seek fresh Aircel auction after failed rescue

Aircel Ltd which once boasted of 90 million customers before it crumbled under crushing debt may return to the auction block, after a previous attempt to rescue the telecom operator failed to take off.

- Devina Sengupta & Jatin Grover

Lenders to the bankrupt company are looking to restart the corporate insolvency resolution process (CIRP), after its previous winner could not secure clearance from the Reserve Bank of India (RBI), a court petition showed. The lenders approached the National Company Law Tribunal (NCLT) in October, and the tribunal's Mumbai bench heard the lenders in May, two people aware of the matter said.

"The majority lenders of Aircel entities constituting more than 80% of the voting share in each of the Aircel entities have decided to seek directions from this hon'ble tribunal (NCAT Mumbai) on re-initiation of CIRP of the Aircel entities," said the lenders' petition, a copy of which was seen by Mint. The tribunal will hear the matter next on 31 July.

The banking regulator had rejected UV Asset Reconstruction Co. Ltd's (UVARCL) bid to take over Aircel since it did not have net owned funds of 1,000 crore required to be a resolution applicant, the petition said.

Apart from tower and fibre assets, Aircel holds valuable wireless spectrum. However, whether the spectrum belongs to the company or the government is yet to be decided.