RESTON, Va., January 4, 2023 - NII Holdings, Inc. (“NII” or the “Company”) today announced that on January 3, 2023 the Court of Chancery of the State of Delaware (the “Court”) entered an order approving the continuance of NII’s corporate existence for an additional year, extending NII’s dissolution through January 13, 2024.
Following the distribution of $200.1 million authorized by the Court on September 8, 2021 (the “Initial Distribution”), approximately $76.9 million remained in reserve. The largest portion of the remaining reserve funds are set aside for claims related to a settlement agreement with AT&T Mobility Holdings B.V., New Cingular Wireless Services, Inc., AT&T Holdings Mexico, S. de R.L. de C.V., and AT&T Comunicaciones Digitales, S. de R.L. de C.V. (collectively, “AT&T”) related to the amount of security needed to secure AT&T’s contingent contractual claims in NII’s dissolution proceedings (the “Settlement”).
The Settlement required $75.0 million to be reserved in an escrow account (the “Mexico Escrow Account”) and provided for the Mexico Escrow Account to be reduced and released as seven Mexican tax audits were resolved. To date, four of the seven Mexican tax audits were resolved, and as a result, $17.6 million of the Mexico Escrow Account was released to NII during 2021 at the joint direction of AT&T and NII. Of that amount, approximately $11.7 million was released to NII prior to the Initial Distribution and was therefore included in the determination of the amount of the Initial Distribution. In addition, $4.0 million of the Mexico Escrow Amount was released to AT&T during 2021 at the joint direction of AT&T and NII. Accordingly, $53.5 million currently remains in the Mexico Escrow Account. NII continues to work with AT&T and the Mexican tax authorities to resolve the remaining three tax audits. NII requested an extension of its corporate existence under Delaware law to allow for the completion of these remaining tax matters.
Update on Dissolution Distributions
As of October 31, 2022, NII had approximately $74.4 million in remaining funds, including the Mexico Escrow Amount. Based on currently available information, NII currently estimates that the total amount of remaining distributions will be between $0.50 and $0.68 per share, for a total of between $2.41 and $2.59 per share, including the $1.91 per share liquidating distribution that was made on September 20, 2021. The low end of the range includes a reserve of $3.1 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. 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 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 2021 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
www.nii.com
Investor and Media Relations:
Tim Mulieri
[email protected]