NII Holdings – which operates Nextel branded networks in Latin America – has defaulted on a payment of around $119 million USD in interest payments on its debt of close to USD4.4 billion

Under the terms of debt, there is a 30-day grace period during which the Company may elect to make the interest payments and cure any potential non-payment claims.

Company representatives stated they are still in talks with its creditors to restructure the debt, which could see the lenders taking a stake in the company in a debt-for-equity swap.

Moody’s thinks debtholders might get as little as $0.20 on the dollar, although the final details are still being worked out though.

The company has indicated that it might have to file for bankruptcy protection, and its debt ratings were recently downgraded in light of the expectations that it will file shortly.

With headquarters in the USA, NII Holdings has about 9.4 million largely post-pay subscribers in Latin America. NII had approximately $4.14 billion in consolidated operating revenue for the LTM period ended 2Q’14 generated from a subscriber base across Mexico, Brazil, Argentina, and Chile.