Nextel Mexico Sold to AT&T
Published on: 30th Apr 2015
Note -- this news article is more than a year old.
NII Holdings has completed the previously announced sale of its Mexican operations to AT&T for an aggregate purchase price of $1.88 billion, subject to customary post closing adjustments.
After deducting Nextel Mexico's outstanding indebtedness net of its cash balance and applying estimates of other specified purchase price adjustments at closing, NII received $1.45 billion of net proceeds.
The transaction, which was structured as a sale of the parent company of Nextel Mexico, was completed as part of NII's broader debt restructuring efforts. A portion of the net proceeds from the transaction will be used to support NII's operations in Brazil and the remainder will be used to fund distributions to specified creditors, pursuant to the proposed plan of reorganization in the Chapter 11 bankruptcy proceedings of NII and certain of its subsidiaries, that is pending before the United States Bankruptcy Court. The plan of reorganization remains subject to the approval of the creditors in the bankruptcy proceedings and the approval of the Bankruptcy Court.
"This sale represents an important step forward as we look to emerge from Chapter 11 reorganization as a stronger, healthier company that is positioned to compete in Brazil's wireless marketplace," said Steve Shindler, NII's chief executive officer. "This deal strengthens our liquidity position as we pursue growth opportunities in Brazil and build value in our business over the long-term."
"We are proud of the success that our team in Mexico has achieved as a part of our company for 18 years, and we are grateful to all of our employees there for their dedication and service," added Shindler.