NII Holdings Issues Mid-Year Financial Status And Provides Update On Dissolution Matters
- Net Assets in Liquidation of $272 million, or $2.61 per share
- June 30, 2020 cash and cash equivalents of $167 million
- June 30, 2020 restricted cash of $117 million comprised of $87 million held in escrow related to the sale of Nextel Mexico and $30 million held in escrow related to the sale of Nextel Brazil
RESTON, Va., Aug. 31, 2020 /PRNewswire/ -- NII Holdings, Inc. ("NII") today issued its Statement of Net Assets in Liquidation as of June 30, 2020 and provided an update on its dissolution.
Financial Update
As of June 30, 2020, NII had net assets in liquidation of $272 million, or $2.61 per share, comprised of $167 million of unrestricted cash and $117 million of restricted cash, offset by current liabilities of $3 million and accrued liquidation costs of $9 million.
Net assets in liquidation decreased by $3 million from December 31, 2019 to June 30, 2020, primarily as a result of a $2 million decrease to NII's estimate of future interest income as a result of the decline in market interest rates.
Accrued liquidation costs include all expected future operating expenses, offset by estimated interest income. This amount is an estimate and may fluctuate as a result of changes in NII's current assumptions with respect to the dissolution process, including the costs related to the recovery of cash held in escrow, the outcome of and ultimate liability of NII for the various claims received during the dissolution process, as well as other factors.
Based on currently available information, NII currently estimates that the total amount of distributions will be from $2.10 to $2.61 per share. The low end of the range includes a reserve of $5 million for additional tax, accounting and legal costs, as well as potential personnel costs, that may need to be incurred in connection with the dissolution process and a reserve of $3 million for currently unknown claims that may arise during the dissolution process. The high end of the range has decreased from NII's previous guidance as a result of decreases in market interest rates and higher costs to retire NII's 4.25% convertible senior notes due 2023 as compared to original estimates. The ultimate amount distributable to stockholders will depend on factors outside of NII's control, including, among other things, the amount of cash recovered from escrow amounts related to the sale of NII's operations in Mexico and Brazil, and could vary from NII's current estimates.
NII Holdings, Inc. |
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Consolidated Statement of Net Assets in Liquidation |
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(in thousands, except per share amount) |
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December 31, 2019 |
June 30, 2020 |
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Cash and cash equivalents |
$ 181,971 |
$ 167,313 |
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Restricted cash |
268,287 |
117,143 |
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Insurance and other receivables |
1,307 |
- |
||||
Debt |
(126,324) |
- |
||||
Accounts payable and accrued expenses |
(42,617) |
(3,349) |
||||
Accrued liquidation costs, net |
(7,231) |
(8,663) |
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Net assets in liquidation |
$ 275,393 |
$ 272,444 |
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Number of Common Shares outstanding |
104,483 |
104,483 |
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Net assets in liquidation per share |
$ 2.64 |
$ 2.61 |
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Update on Dissolution Matters
As previously announced, on January 13, 2020 NII filed a certificate of dissolution with the Secretary of State of the State of Delaware. Pursuant to the General Corporation Law of the State of Delaware, NII provided notice to all persons who may have a claim against NII, and the notice period for claims to be received by NII expired on April 3, 2020. NII received claims from eight claimants within such period and has responded to each of these claims with a proposed reserve or rejected the claim in circumstances where NII did not deem the claim appropriate. Each claimant has a deadline to accept or reject NII's proposed reserve or to file suit with respect to a rejected claim, and NII expects to receive a response from each of the claimants on or before October 9, 2020.
About NII Holdings, Inc.
Visit NII Holdings' website at www.nii.com.
NII Holdings, Inc.
1405 S Fern Street, #93001
Arlington, VA 22202
(703) 390-5100
www.nii.com
Investor Relations:
Tim Mulieri
[email protected]
SOURCE NII Holdings, Inc.
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