RESTON, Va.—NII Holdings Inc., a subsidiary of Nextel Communications Inc., revealed it failed to make an $8.3 million payment on Dec. 31 under its Argentine credit facility and could be forced to file for bankruptcy.
According to the filing with the Securities and Exchange Commission, NII Holdings did not make the $8.3 million payment, but was able to put up the $2.4 million interest payment under the credit facility. NII said it has retained Houlihan Lokey Howard Zukin Capital to advise the company on its options going forward.
“NII may be required to sell strategic assets, reorganize under Chapter 11 of the U.S. Bankruptcy Code or take other measures,” NII said.
The company also entered an agreement with more than 51 percent of the lenders, including Motorola Inc., who said they would not demand repayment until Jan. 22.
As of Dec. 31, the aggregate principal balance outstanding under the Argentine credit facility was about $108 million and the balance under the vendor financing facilities was about $382 million.
