Money From Creditors, Payment By Saudi Telecom Keep Aircel Ringing

Money trickling in from creditors, sale of inventory and a payment from Saudi Telecom are keeping Aircel afloat even as the debt-laden telecom operator is pinning hopes on release of bank guarantees. The telecom operator is also getting cash to continue operations from its enterprise business.

“Basically, the company is trying to keep the operations going on assets and receivables. There was some amount due from Saudi Telecom and that came in, while the company is expecting an early release of the bank guarantees which will help in financing operations,”

In 2007, state-run Saudi Telecom entered the Indian market by buying 25 per cent equity in Malaysia’s Maxis that owns a controlling stake in Aircel. The carrier had acquired a 25 per cent in Maxis Communication for $3 billion (₹12,300 crore).

Aircel is also pinning hopes on the release of bank guarantees worth ₹751 crore to help it operate and pay salaries. The bank guarantees, if received soon, will be the lifeline to continue operations for another 4-6 months.

The Department of Telecommunications (DoT) is holding the bank guarantees submitted to it when Aircel transferred its Broadband and Wireless Access (BWA) spectrum to Bharti Airtel. Aircel had moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), which in January 2018, directed that the bank guarantees be released.

Sources, however, declined to quantify the amount it was getting on a monthly basis for the operations. – The Hindu BusinessLine