Nextel also announced it has retained Rothschild as its financial advisor to explore and advise the company regarding opportunities for modifying its capital structure to improve its long-term liquidity position, including potential approaches that could lead to refinancing or restructuring all or a portion of its existing debt.
Nextel recently reported a net loss of USD 1.6 billion for 2013, due mainly to its operations in Mexico, where it has struggled to compete with the bigger operators. The company has expanded beyond business and PTT services to target the consumer and 3G market, but continues to lose customers in the face of tough competition and limited network coverage. Nextel sold its operations in Peru last year and said recently it's also looking at strategic opportunities in Chile and Argentina. In total, Nextel had 9.5 million customers at the end of 2013.
NII ended 2013 with total debt of USD 5.8 billion and USD 2.4 billion in cash and investments. It said significant investment needed to improve its commercial position and networks means OIBDA will be negative in 2014, after falling 66 percent in 2013 to USD 324 million. This puts it at risk of missing its debt covenants in 2014 and lacking the required funding for its business in 2015 and beyond. In its annual SEC filing, its auditors already raised the possibility that the group may not be able to continue as a going concern.
