RESTON, Va., April 29, 2021 /PRNewswire/ — NII Holdings, Inc. («NII» or the «Company») today issued its 2020 audited financial statements and provided an update on its dissolution.
2020 Audited Financial Statements
The audited financial statements are available on NII’s website at www.nii.com.
NII reported net assets in liquidation as of December 31, 2020 of $276.3 million ($2.64 per share), an increase of $0.9 million as compared to net assets in liquidation as of December 31, 2019 of $275.4 million.
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. Further, on October 8, 2020, the Company filed a Verified Petition for Dissolution in the Court of Chancery of the State of Delaware (the «Delaware Court»). In addition, on January 15, 2021, the Company filed a Motion for a Distribution to Stockholders and for Approval of Reserves (the «Motion») requesting that the Delaware Court enter an order granting NII’s request to make an initial distribution of $161.0 million (approximately $1.54 per share) to the Company’s stockholders and to establish a reserve of $125.7 million for the Company’s remaining known claimants and potential future unknown claimants.
On March 22, 2021, the Delaware Court entered an Order Approving Notice and Certain Reserve Amounts and Barring Certain Claims (the «Order»). The Order approved the reserves set forth in the Motion, with the exception of the proposed $3 million reserve for potential unknown claims (the «Unknown Claims Reserve»). On March 16, 2021, the Delaware Court entered a separate order appointing a guardian ad litem (the «Guardian») to represent the interests of potential unknown future claimants. The Guardian has been charged with investigating the nature and extent of possible unknown claims, evaluating the sufficiency of the Unknown Claims Reserve, and evaluating whether a period of time longer than five years after the date of dissolution should be used for evaluating potential unknown claims. If the Guardian determines that the Unknown Claims Reserve is adequate, then the Guardian will submit a recommendation to the Delaware Court to that effect. If the Guardian, determines that the Unknown Claims Reserve is inadequate, then the Guardian may negotiate with the Company regarding an adequate Unknown Claims Reserve. If the Guardian and the Company cannot reach agreement, then the Guardian will litigate the question of an Unknown Claims Reserve on behalf of the potential unknown claimants.
While there can be no assurances with respect to the timing or outcome of the work conducted by the Guardian, all other reserves proposed in the Motion were approved by the Delaware Court in the Order, and therefore the Company expects to make an initial distribution once the Guardian’s work is concluded and approved by the Delaware Court.
Furthermore, the Delaware Court may require NII to withhold an aggregate amount of security in excess of the $3 million amount originally proposed by NII for the Unknown Claims Reserve. In addition, NII cannot predict the impact, if any, of the Covid-19 pandemic on the timing of proceedings in the Delaware Court, and it is possible that delays could result. There also can be no assurance as to the timing or amount of any additional distributions that NII may make as part of the dissolution process.
Based on currently available information, NII currently estimates that the total amount of distributions will be between $2.14 and $2.65 per share. The low end of the range includes a reserve of $5.0 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 the $3.0 million Unknown Claims Reserve, which constitutes the Unknown Claims Reserve proposed by NII in the Motion, but remains subject to review by the Guardian and approval by the Delaware Court. 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 the amount that the Delaware Court ultimately determines is reasonably likely to be sufficient for the Unknown Claims Reserve, and could vary from NII’s current estimates.
More information about these matters and the Company’s financial condition can be found in the Company’s 2020 audited financial statements.
About NII Holdings, Inc.
Visit NII’s website at www.nii.com.
NII Holdings, Inc.
1405 S Fern Street, #93001
Arlington, VA 22202
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SOURCE NII Holdings, Inc.