NII Holdings Hires Bankers to Look at Possible Sale of the Company
Published on: 10th Mar 2014
By: Ian Mansfield
Latin American mobile network operator NII Holdings is studying options that could see a sale of the entire company as it struggles to pay debt in the face of a shrinking customer base.
The company said that it has retained UBS Investment Bank as its financial advisor to explore and advise the company on potential strategic opportunities.
NII Holdings -- which operates Nextel branded networks -- said that it is looking at creating partnerships or alliances, selling or merging one or more of the company's business units or other strategic transactions involving the entire company.
Concurrently, the company has retained Rothschild as its financial advisor to explore and advise the company regarding opportunities for modifying its capital structure to improve its long-term liquidity position, including potential approaches that could lead to refinancing or restructuring all or a portion of its existing debt obligations.
The company currently sits on USD5.8 billion of debt and USD1.7 billion in cash. It expects to have sufficient funds to meet its obligations this year, but is uncertain about next year.
Last December the company announced 1,400 job loses and cut a quarter of its US headquarters to reduce its costs.