Lenders approve UVARCL proposal to acquire Aircel

MUMBAI: Aircel’s lenders are said to have approved a proposal of takeover from UV Asset Reconstruction Company (UVARCL), ending a year-long debt resolution process that was the first of its kind in the telecom sector.

While the bankrupt operator may have narrowly escaped liquidation, its financial creditors may recover 15-20% of loans they extended to Aircel, among the lowest in major insolvency cases so far. “Lenders can recover 15-20% of their investments, which is a sweet deal in the given circumstances,” said a person aware of the development. “The asset reconstruction company will take the business as a going concern and run the smaller businesses like bulk SMS and enterprise. The rest of the assets will be sold and that money too will go to the lenders. The recovery will take 12-36 months.”