NII Holdings says it likely will file for Chapter 11
Reston-based NII Holdings said in an earnings report released Monday that it will likely file for Chapter 11 bankruptcy because of its financial performance and debt obligations.
The news caused the company’s stock to plummet to 16 cents on NASDAQ when the market closed on Tuesday, down more than 75 percent from the previous day’s closing price of 66 cents.
The Fortune 500 company provides mobile communication services for businesses and consumers in Latin America through the Nextel brand.
NII Holdings said that in the second quarter 2014 it lost 77,000 subscribers, bringing its subscriber base to 9.4 million, a roughly 6 percent decrease from the same quarter in 2013.
The company’s operating revenues for the second quarter 2014 dropped by 23 percent since this time last year to $969 million. Its net loss from continuing operations this quarter was $629 million, or $3.65 per basic share.
“Despite the actions we've taken to improve our operational performance, we have fallen short in our efforts, leaving the company with a liquidity position that is not sufficient to support the business,” Steve Shindler, NII Holdings' CEO, said in a statement.