Aircel seeks appointment of interim resolution professional

MUMBAI: Troubled telecom operator Aircel Ltd, which has filed for bankruptcy, approached the Mumbai bench of the National Company Law Tribunal (NCLT) for the appointment of an interim resolution professional (IRP) on Monday.

“The company has filed for bankruptcy along with its two subsidiaries since the company has a debt of over ₹50,000 crore,” said senior counsel Janak Dwarkadas, who is appearing for the company. “Out of that, ₹15,000 crore is due to financial creditors, while ₹35,000 crore to operational creditors.”

According to the counsel, there is serious urgency to hear the matter because the company wants to continue essential services. Also, there are some 6,000 employees who haven’t got their dues for February and need to be take into account, the counsel said.

“An IRP is appointed after an application under Section 10 is made to the tribunal. Immediately thereafter, moratorium period is declared which means that all the claims (including claims by tax authorities) against Aircel can only be made to the resolution profession,” said Ashish K Singh, managing partner of law firm Capstone Legal.

After hearing the matter, justice M K Shrawat adjourned the matter to March 8.

At the time of filing insolvency, Aircel had said that it filed the application under Section 10 of the Insolvency and Bankruptcy Code (2016) for undertaking corporate insolvency resolution process for Aircel Cellular Ltd, Dishnet Wireless Ltd and Aircel Ltd. The company initiated the process to file for bankruptcy on February 28.