Airtel Goes Bankrupt

Airtel Nigeria Limited has gone bankrupt; this is according to separate affidavits filed by 16 commercial banks in the country before a Lagos State High Court.

In the affidavits, it showed that the net sum of Airtel’s assets pale into insignificance in the face of the liabilities of the firm, Daily Independent reports.

The total cash standing to the credit of the firm, according to the affidavits, was N131 million as at February 5, whereas the company was indebted to the tune of N51,176,406, 896.90.

According to the case, which brought about the revelation, Airtel had in 2003, terminated a contract earlier awarded to an indigenous Nigerian telecom service provider, Procomtel Limited.
Dissatisfied with the development, Procomtel approached Airtel in an attempt to resolve the matter.

Airtel was said to have agreed to pay Procomtel some money, while the rest was referred to arbitration.

The company paid the promised money, but refused to proceed with arbitration as agreed, a development which prompted Procomtel to file a suit against the company before the High Court of Lagos State.

The court, however, granted a request by Airtel that the matter should be taken back for arbitration.