Aircel Cellular Ltd. is in talks with Bharti Airtel Ltd. and Reliance Jio Infocomm for roaming agreements that could keep its network running, India's The Economic Times reports, citing sources.
A potential deal, however, is reportedly hindered by Aircel's incapacity to pay. GTL Infrastructure Ltd., the debt-ridden telco's tower partner, earlier stopped operating part of Aircel's network, over non-payment of dues.
A GTL spokesperson confirmed that the company is in talks to resume running the operator's network, and that it looking at how to deal with settling payments.
The Chennai-based operator's lenders allowed to release funds from a previously frozen account to be used for some working capital payments, according to a source. Moreover, bringing Aircel's network back on could preserve the operator's average revenue per user, another source said.
Aircel and its two units, Dishnet Wireless Ltd. and Aircel Ltd., announced Feb. 28 that they had filed for bankruptcy.
The bankruptcy application followed Aircel's Malaysian parent Maxis Bhd. reportedly backing out of plans to invest up to $1.1 billion in the telco, supposedly to help restructure debt worth 155 billion Indian rupees.
Aircel explored a merger with Reliance Anil Dhirubhai Ambani Group unit Reliance Communications Ltd., but the companies terminated the deal "by mutual consent" due to "inordinate delays caused by legal and regulatory uncertainties," among other reasons.
The 5,000 employees expected to be impacted by Aircel's demise are preparing for the possibility of being laid off.
As of March 1, US$1 was equivalent to 65.29 Indian rupees.
