NII Holdings sells Nextel Mexico to AT&T
Reston-based NII Holdings said this week it has sold Nextel Mexico to AT&T for $1.88 billion.
“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,” Steve Shindler, NII's CEO, said in a statement.
The wireless communications company filed for Chapter 11 bankruptcy protection last September. It announced plans to sell Nextel Mexico in January.
NII received $1.448 billion in proceeds from the sale, including $187.5 million of cash placed in escrow to secure specified indemnity obligations. The company used $350.5 million of the proceeds from the sale to repay in full the outstanding principal and accrued interest due under its debtor-in-possession loan that it borrowed in March.
A portion of the net proceeds from the transaction will be used to support NII's operations in Brazil, and the rest will be used to fund distributions to specified creditors, pursuant to the proposed plan of reorganization in its Chapter 11 bankruptcy proceedings.
NII Holdings provides mobile communication services for businesses and consumers in Brazil and Argentina, where it operates under the Nextel brand. Its offerings there include Internet, voice and data services.