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

Monday, September 15, 2014

Nextel carrier NII to seek bankruptcy as early as Monday -sources, (NASDAQ: NIHD)

NII Holdings Inc, the Nextel operator struggling with $5.8 billion in debt and fierce competition in Brazil and Mexico, plans to file for bankruptcy protection in the United States as early as Monday, according to two sources with direct knowledge of the situation.According to one source, who requested anonymity since the process is underway, the so-called Chapter 11 filing would allow Reston, Virginia-based NII Holdings to restructure debt with creditors by turning them into shareholders. NII Holdings, which did not immediately respond to a request for comment, 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, the same source added. Chapter 11 is a form of bankruptcy that reorganizes a company's business affairs and assets for a limited period.Shares of NII Holdings tumbled 4.9 percent to $0.12 in Monday morning trading in New York. The price on NII's 10 percent bond due in August 2016 jumped 0.3 percentage point on Monday to 23 cents on the dollar, according to FINRA prices.

NII Holdings, Inc. (NII Holdings) is a holding company for the operations of Nextel Communications, Inc. Shares of NIHD fell by 5.12% or $-0.0067/share to $0.12. 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 4857545.