NII Holdings to sell off Nextel Chile
19 August 2014 | Kavit Majithia
Financial company NII Holdings is set to sell off its Chilean subsidiary Nextel Chile to a consortium of bidders.
Argentinean media company Optimum Advisors, a US private equity firm and London investment company ISM Capital have formed a consortium to make the acquisition.
NII filed documents to the US Securities and Exchange Commission, however negotiations over the deal continues with bondholders, with the company still attempting to restructure debt load.
The financial details remain undisclosed, and according to financial filings, Nextel Chile posted $24.5 million in losses and $16.7 in revenue during the last quarter.
In 2013, the subsidiary made a loss of $39.9 million and $14.6 million in revenue, however NII did not reveal its value on the asset.
NII revealed it has yet to reach an agreement with bondholders or lenders over debt restructuring, however the deal will go through on a Chapter 11 filing.
NII posted a Q2 loss of $623.3 million, and the company’s chief executive Steve Shindler conceded that the company had fallen short in its bid to improve operational performance.
“Despite the actions we’ve taken to improve our operational performance, we have fallen short in our efforts, leaving the company with a liquidity position that is not sufficient to support the business,” he said.
NII owns wireless subsidiaries in Mexico, Argentina and Brazil.