India telecom operator Aircel filed for bankruptcy

Highlights:
  • India’s sixth largest telecom operator Aircel along with its units – Aircel Cellular and Dishnet Wireless filed for bankruptcy in the National Companies Law Tribunal (NCLT) in Mumbai. 
  • It filed for bankruptcy after its Malaysian promoter Maxis Communications decided against pumping additional funds into the company.
  • It thus became the fourth telecom firm to wind up its operations mainly due to fierce competition and high levels of debt.
  • It is worth mentioning that prior to Aircel the three other telecom operators who had decided to wind-up their operations are – Anil Ambani-run Reliance Communications, Norway-based Telenor and the wireless business of Tata Teleservices.