Boston, MA 09/22/2014 (wallstreetpr) – NII Holdings Inc (NASDAQ:NIHD) received court approval on its first-day bankruptcy requests. It can continue with its routine operations. The verdict came after NII Holdings said that it had made good progress on negotiations with bondholders over restructuring issues.
The decision
Shelley C. Chapman, the Judge of U.S. Bankruptcy Court, said that NII Holdings Inc (NASDAQ:NIHD) can use its cash management systems. Also, the court granted NII the permission to pay 70 employees. NII’s operating subsidiaries employees have taken over the work of NII Holdings employees. The operating subsidiaries include Nextel wireless units in Mexico and Brazil. These operating companies are not in the list of nine entities NII put into Chapter 11.
The issue
NII Holdings Inc (NASDAQ:NIHD) announced a month ago that it had failed to pay $118.8 million interest payment. As a result, it will now be in a 30-day grace period during which the bondholders will not take any action against NII. Following the news, the market was well-prepared for the upcoming bankruptcy news. However, NII said that time it will initiate negotiations with bondholders over restructuring issues. The discussions that took place this week didn’t result in an agreement but were fruitful.
The support
Aurelius Capital Management LP. Is one of the main creditors groups of NII Holdings. It is supporting a swift emergence from bankruptcy for the company. It is ready to support the proposal presented by NII Holdings Inc (NASDAQ:NIHD). However, the second creditor group has denied the proposal. NII Holdings has $8 billion in liabilities and $7.4 billion in assets. The information filed in bankruptcy reads as $4.58 billion in debt and $3.79 billion in assets. NII’s poor show started late last decade as it didn’t had the services and products to compete with the 3G networks services launched by its competitors. NII Holdings is a late entrant in the field of 3G networks.
