Aircel , the debt-ridden mobile service provider, and its two units filed for bankruptcy in the National Company Law Tribunal, underscoring the struggles of India’s smaller telcos in a brutally competitive market amid a crackdown on large loan defaulters. Detailed talks with lenders and shareholders failed to yield a consensus on restructuring Rs 15,500 crore of debt and getting funding, leaving resolution under the Insolvency & Bankruptcy Code, 2016, as the only option, Aircel said in a statement on Wednesday. Aircel’s decision to move the NCLT was spurred by the Reserve Bank of India’s decision to scrap debt revamp schemes in favour of the Insolvency & Bankruptcy Code. “No agreement could be reached. Under current circumstances, especially after the 12 February 2018 RBI guidelines, the company believes resolution process under the Code is an appropriate recourse,” the company, majority-owned by Malaysia’s Maxis , said in the statement. Aircel – founded some 19
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