August 11, 2014 / 10:16 PM / in 3 years

NII Holdings says may file for bankruptcy

Aug 11 (Reuters) - Mobile service provider NII Holdings Inc , which operates under the Nextel brand in Latin America, said it may have to file for bankruptcy after reporting its ninth quarterly loss in a row.

“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 statement.

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 approaches.”

The company ended the second quarter with a net debt of $4.8 billion.

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.

Operating revenue fell 23 percent to $968.8 million. (Reporting by Soham Chatterjee in Bangalore; Editing by Feroze Jamal)

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