The bonds of NII Holdings Inc. are poised to lose as much as $3 billion in value after the mobile-phone carrier operating under the Nextel brand in Latin America said it will probably file for bankruptcy protection.
Recovery rates for creditors of NII, which has $5.8 billion in debt, may be as little as 20 percent, according to Moody's Investors Service. Aurelius Capital Management, the distressed-debt investor that's battling the government of Argentina and is also an NII creditor, claimed the company is already in default as it faces $119 million in interest payments due Aug. 15.
The Reston, Virginia-based company said in an Aug. 11 earnings report that it received waivers on certain financial facilities until the end of the year, at which time the holders of NII's senior notes can declare a default and demand repayment if the waivers aren't extended. NII has been losing customers as it fell behind America Movil SAB and Telefonica SA in offering faster download speeds for smartphones.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
