Boston, MA 08/19/2014 (wallstreetpr) – NII Holdings Inc. (NASDAQ:NIHD) received a lifeline on Monday trading session after an announcement that the company had completed the sale of its Nextel Chile Subsidiary, caused it to surge by highs of 35.08% closing the day on a high of $0.19. Based in Reston Virginia, the mobile phone carrier is reported to have sold its entire entire equity stake in Nextel Chile to Fucata SA. NII Holdings does most of its business in Latin America.
No Change of Leadership
Estanisalo Pena is expected to remain the president of the sold entity consequently welcoming the deal and stating it is a sign of good things to come, sure to lead the company on the right path. The announcement of the sale agreement comes a week barely, after NII Holdings Inc. (NASDAQ:NIHD) announced that it would not be able to pay $118.8 million in coupon payments consequently stating it was engaged’ in negotiations with creditors. Despite missing the Coupon payments, NII Holdings remains confident on paying the same within the next 30 days, at the back of receiving the much-needed funds from the sale of Nextel.
Nextel begun offering cell phone and mobile broadband services in 2012 and currently has about 60MHZ in AWS spectrum. The network currently provides coverage to more than 260,000 subscribers. With the sale of Nextel, NII holdings’ has essentially lost 1.5% revenue stream that it used to get from the unit.
NII Holding Financial Woes
NII Holdings Inc. (NASDAQ:NIHD) continues to face financial difficulties having declared that it was negotiating with creditors on the possible ways to restructure its debts including possible debt swaps or exchange of bonds for equity. The company debt levels currently stand at approximately $5.8 billion meaning the recovery rates for creditors currently stands at a low of 20%
NII Holdings Inc. (NASDAQ:NIHD) 7.875% notes due in August 2019 soared by 3 cents on the dollar to 69 cents on the announcement of the sale
