Aircel lenders staring at a 30% hit due to regulatory delays

MUMBAI: Aircel’s lenders are likely to take a further hit of about 30% on their expected recovery of Rs 6,630 crore with regulatory delays further eroding the value of fibre and spectrum, people familiar with the matter, said. A devaluation of about 10% due to regulatory delays is estimated also for the assets of Reliance Communications (RCom), the second telco to be in the midst of bankruptcy proceedings.
“Increased delays mean corporate insolvency resolution process (CIRP) costs will shoot up. Fibre, spectrum or towers have barely been maintained,” said a person aware of the development. “The recovery amount for Aircel will go down by 20-30% at least, and all this is because of the regulatory delays.”
At the time of receiving approval from the dedicated bankruptcy court, the CIRP cost was Rs 298.48 crore, which need to be paid first, even before lenders are paid.