Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, September 15, 2014

Nextel carrier NII files for bankruptcy protection as debt soars, (NASDAQ: NIHD)

NII Holdings Inc, the parent of Nextel operators in Latin America, filed for U.S. bankruptcy protection on Monday after struggling for years with debt, fierce competition in Brazil and Mexico, and a dispute with a U.S. hedge fund.The company filed a voluntary petition for so-called Chapter 11 in U.S. Bankruptcy Court in New York, according to a filing.The decision should allow Reston, Virginia-based NII Holdings to restructure debt with creditors by turning them into shareholders, sources with direct knowledge of the situation said. NII Holdings operates in several countries in Latin America under the Nextel brand.The Chapter 11 filing could also help the company implement a more sustainable business model with a focus on Brazil and Mexico, its main markets. Chapter 11 is a form of bankruptcy that protects a company from its creditors while it reorganizes its business affairs and assets for a limited period.

NII Holdings, Inc. (NII Holdings) is a holding company for the operations of Nextel Communications, Inc. Shares of NIHD fell by 36.59% or $-0.0479/share to $0.08. In the past year, the shares have traded as low as $0.11 and as high as $7.32. On average, 7089570 shares of NIHD exchange hands on a given day and today's volume is recorded at 26725416.