PETALING JAYA: Maxis Communications has pumped an additional ₹95 crore (RM60 million) into Aircel to enable the loss-making mobile operator to pay the salaries of some 4,000 employees, The Hindu BusinessLine reports.
BusinessLine, which called the move “a goodwill gesture”, said the fresh funding would be made through Maxis’ Mauritius-based subsidiary, Global Communication Services Holdings (GCSH).
“While GCSH is not obligated to fund Aircel anymore, it infused ₹95 crore into Aircel on March 31, 2018, to only cover unpaid salaries of Aircel staff for about a month and a half and certain expenses, which is up to the point when the Insolvency Resolution Professional was appointed by the NCLT,” GCSH told BusinessLine, referring to India’s National Company Law Tribunal.
Aircel, which is 74%-owned by Maxis, filed to start bankruptcy proceedings last month. Maxis boss Ananda Krishnan had spent some US$800 million to purchase the carrier in 2006 but now stands to lose all the money poured into Aircel since then, people familiar with the matter told Bloomberg.
Maxis had reportedly made about US$3.4 billion of shareholder advances to Aircel over the years.
Sources close to the development told BusinessLine that the salaries of the 4,000 employees were expected to be credited by Tuesday.
According to The Malaysian Reserve, Maxis, which is majority owned by Ananda, has a market value of RM46.08 billion.