NII Holdings files for chapter 11

News Wireless Latin America and the Caribbean 16 SEP 2014
NII Holdings files for chapter 11

Latin American mobile operator NII Holdings has filed for chapter 11 protection from creditors in the US. Signaled last month already as an option, the chapter 11 proceedings will give NII time to restructure its debt and improve liquidity, while continuing operations. 

NII, which operates under the name Nextel, has been in discussions with its major stakeholders over the last several months and said it's optimistic that those discussions will lead to a debt restructuring plan and reorganization. The company's operating subsidiaries in Brazil, Mexico and Argentina are not part of the US bankruptcy proceedings and will continue to operate on a "business as usual" basis. 

In the second quarter, the group reported a net loss of USD 629 million on revenues of USD 969 million, down 23 percent year-on-year. After a cash outflow of USD 919 million in the period, NII finished the period with net debt of USD 4.8 billion. 

Categories:

Mobile

Companies:

Nextel

Regions:

Latin America and the Caribbean

Tags:

Bankruptcy - Insolvency, Financial funding

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