Latest News | UV Asset Reconstruction Gets NCLT Nod to Sell Aircel Spectrum

Mumbai, Jun 18 (PTI) UV Asset Reconstruction has received permission from the National Company Law Tribunal to sell or transfer spectrum of Aircel that it acquired recently.

The company's spectrum worth Rs 1,100-2,000 crore is valid till 2026 in Delhi, Rajasthan, Mumbai, Karnataka and Andhra Pradesh. Aircel also has an optic fibre network of 14,500 km across India.

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In its order, the Mumbai bench of NCLT said, "Allowing transfer of right to use spectrum to any of the proposed spectrum buyers free of any encumbrance, including any encumbrance from Department of Telecom (DoT)."

The tribunal on June 9 had approved the insolvency resolution plan for Aircel that allowed UV Asset Reconstruction (UVARCL) to take over the operator's assets.

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UVARCL is to take over the business as a going concern and run smaller units like the bulk SMS and enterprise divisions, according to the plan okayed in May 2019.

The rest of the assets were to be sold with that money going to the lenders.

Aircel owes claims to the tune of Rs 20,000 crore to lenders including State Bank of India, Bank of Baroda, Punjab National Bank, China Development Bank Corp and Canara Bank.

State Bank of India has the biggest exposure of 36.6 per cent, followed by Punjab National Bank at 15.1 per cent, China Development Bank Corporation at 13.7 per cent and Bank of Baroda at 10.5 per cent.

In February 2018, Aircel filed for bankruptcy protection with the NCLT in Mumbai after its Malaysian promoter Maxis Communications decided against pumping additional funds into the company.

The tribunal admitted Aircel's application in March 2018, and appointed a resolution professional (RP).

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)