(Adds details, shares)
Aug 11 Mobile service provider NII Holdings Inc
, reporting its ninth quarterly loss in a row, said on
Monday it may have to file for bankruptcy after struggling to
compete in Brazil and Mexico.
NII shares fell more than 50 percent in after-market trading
to 30 U.S. cents, after ending regular trade at 66 cents on the
"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," Chief Executive Steve Shindler said in a
NII, which in March hired financial firms to advise on a
potential sale of the company, said it will not be able to
continue to operate unless it can "restructure debt obligations,
find a strategic solution or some combination of those
In March, the company said it hired UBS Investment Bank to
explore options that could also include partnerships as well as
the sale or merger of one or more of its business units.
The company, which operates in Latin America under the
Nextel brand, ended the second quarter with a net debt of $4.8
billion and with $1 billion in cash and investments.
NII said on Monday it is taking more aggressive actions to
cut costs and balance investments and is in talks with creditors
to restructure debt.
The company said, in its annual regulatory filing in
February, it believed it had sufficient funds to meet its
obligations through 2014 but was unlikely to have enough funds
for next year.
NII is facing intense competition in Brazil and Mexico - its
The company is struggling to stem customer losses as its
higher-paying corporate customers are lured away by Telefonica
Brasil SA and Mexican billionaire Carlos
Slim-controlled America Movil with their unlimited
plans and faster and bigger networks.
NII said earlier this year it lost customers in Mexico, its
second-biggest market, because of problems with its roaming
services after Sprint Corp, from which it licenses the
Nextel brand for Latin America, shut its iDEN network in the
country last June.
NII's quarterly loss widened to $623.3 million, or $3.62 per
share, from $396.4 million, or $2.30 per share, a year earlier.
The company lost 77,000 subscribers in the quarter ended
June 30 and average revenue per subscriber fell to $28 from $36
a year earlier.
Operating revenue fell 23 percent to $968.8 million.
Analysts expected a loss of $2.30 per share on revenue of
$948.1 million, according to Thomson Reuters I/B/E/S.
NII said that because of the ongoing review of its
restructuring options it will not hold a conference call this
(Reporting by Soham Chatterjee in Bangalore; Editing by Feroze
Jamal and Steve Orlofsky)