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Aircel Distributors File Application In NCLT Seeking Clarification On The Definition Of ‘Other Creditor’

By LawStreet News Network      12 February, 2020 09:02 PM      0 Comments
Aircel Distributors File Application In NCLT Seeking Clarification On The Definition Of ‘Other Creditor’

On February 11, 2020, more than 53 Aircel distributors have filed application in National Company Law Tribunal (NCLT) seeking to classify distributor as Financial creditor or operational distributor. As more than 53 distributors have been affirmed as the other creditor by the resolution professional of Aircel. The distributor informed tribunal that Aircel has not returned money or delivered products, such as vouchers and other products, which distributors had purchased under the distributorship agreement, which was in force till February 2018.

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, in this regard, Indus Towers has raised objection that resolution professional does not show entire figure in resolution plan.

The tribunal has scheduled both pleas for next week.

Aircel group had on December 1, 2017 informed Telecom Regulatory Authority (Trai) that it intended to surrender its entire licence in Gujarat, Maharashtra, Haryana, Himachal, Madhya Pradesh and Uttar Pradesh-West circles, following which the company shut services in these circles from January 31, 2018. On February 22, 2018, 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.

Aircel and its subsidiaries Aircel Cellular and Dishnet Wireless together owe around Rs. 50,000 crores to creditors. The combined liability of the firms towards financial creditors stands at Rs. 15,545 crores and around Rs. 35,000 crores to operational creditors. The telco's assets, including spectrum licences and fibre assets, are valued at around Rs. 32,362 crores.

 

Author – Satwik Sharma



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