As per the reports, The National Company Law Tribunal (NCLT) has approved the insolvency resolution plan for Aircel. UV Asset Reconstruction Co. Ltd (UVARCL) to take control over the Aircel’s assets. Aircel's resolution professional Deloitte had checked cases to Rs. 20,000 crore, which means recoveries for lenders of about Rs. 2,000 crore-Rs 3,000 crore cash lent out to Aircel. In any case, the plan was to recover about Rs. 5000 crore – Rs. 6000 crore. Aircel's lenders includes State Bank of India, Bank of Baroda, Punjab National Bank, China Development Bank Corporation (CDB) & Canara Bank. UVARCL is to acquire control over the business as a going concern and run the smaller units.
The remaining assets were to be sold with cash going to the lenders. At that point, recovery was assessed at12-36 months. Aircel's most desired asset is its 4G spectrum in the 900 Mhz, 1800 Mhz, and 2100Mhz groups in the Andhra Pradesh, Delhi, Karnataka, Mumbai, Rajasthan, and Tamil Nadu circles, which are valid until 2026. The telecom operator had recently told the NCLT that the spectrum was worth Rs 1,100-2,000 crore.
However, that worth has been quickly diminishing as expiry is near and the administration intends to sell 4G wireless transmissions by September-October. The new owners may face legal challenges, especially from the telecom department, which has been fighting to take spectrum – Aircel's principal asset, saying it belongs to the Government and should be returned back since the telecom company failed to take care of its duties. In the Aircel case, DoT had fought that a negligible Rs. 16.50 crore was reserved for every operational creditor, including itself, in the plan. The telecom department had filed claims worth about Rs. 10,000 crore, of which just Rs 2,000 crore was approved by the resolution professional.
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