The National Company Law Tribunal (NCLT) has approved the takeover of defunct teclo Aircel by UV Asset Reconstruction Company Limited (UVARCL) with some modifications.
Interestingly, the asset reconstruction company (ARC) had won bids to buy few of the assets of Reliance Communications (RCom) with which Aircel was proposed to be merged. The failure of merger led both the firms to file for bankruptcy under provisions of the Insolvency and Bankruptcy Code (IBC).
“UVARCL resolution plan for Aircel has been approved by the NCLT with certain modifications. We are yet to get detailed copy of the order,” a lawyer in the know of the development told The Hindu.
The ARC’s bid was approved two years after Aircel filed for bankruptcy in March 2018 with an outstanding debt of ₹20,000 crore. Deloitte was acting as the resolution professional for Aircel.
Aircel’s most coveted asset is the spectrum that it holds in the 900 Mhz, 1800 Mhz and 2100 Mhz bands in the States of Andhra Pradesh, Delhi, Karnataka, Mumbai, Rajasthan and Tamil Nadu. The spectrum alone may be worth up to ₹2,000 crore.