NII Holdings Misses Debt Repayment Deadline

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Latin American mobile network operator, NII Holdings has defaulted on a payment of just under USD119 million in interest payments on its debt.

Under the terms of debt, there is a 30-day grace period during which the Company may elect to make the interest payments and cure any potential non-payment claims.

NII Holdings -- which operates Nextel branded networks -- says that it is still in talks with its creditors to restructure the debt, which could see the lenders taking a stake in the company in a debt-for-equity swap.

Moody's thinks debtholders might get as little as $0.20 on the dollar, although the final details are still being worked out though.

The company has indicated that it might have to file for bankruptcy protection, and its debt ratings were recently downgraded in light of the expectations that it will file shortly.

NII Holdings has debts of around USD4.4 billion.

With headquarters in the USA, NII Holdings has about 9.4 million largely post-pay subscribers in Latin America. NII had approximately $4.14 billion in consolidated operating revenue for the LTM period ended 2Q'14 generated from a subscriber base across Mexico, Brazil, Argentina, and Chile.

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