UPDATE 1-Latin American telecom firm NII Holdings may seek bankruptcy

lunes 11 de agosto de 2014 19:33 GYT
 

(Adds details, shares)

Aug 11 (Reuters) - Mobile service provider NII Holdings Inc , reporting its ninth quarterly loss in a row, said on Monday it may have to file for bankruptcy after struggling to compete in Brazil and Mexico.

NII shares fell more than 50 percent in after-market trading to 30 U.S. cents, after ending regular trade at 66 cents on the Nasdaq.

"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," Chief Executive Steve Shindler said in a statement.

NII, which in March hired financial firms to advise on a potential sale of the company, said it will not be able to continue to operate unless it can "restructure debt obligations, find a strategic solution or some combination of those approaches."

In March, the company said it hired UBS Investment Bank to explore options that could also include partnerships as well as the sale or merger of one or more of its business units.

The company, which operates in Latin America under the Nextel brand, ended the second quarter with a net debt of $4.8 billion and with $1 billion in cash and investments.

NII said on Monday it is taking more aggressive actions to cut costs and balance investments and is in talks with creditors to restructure debt.

The company said, in its annual regulatory filing in February, it believed it had sufficient funds to meet its obligations through 2014 but was unlikely to have enough funds for next year.   Continuación...