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"NII Holdings, Inc. today announced its consolidated financial results for the second quarter of 2014. The Company reported a net loss of 77,000 subscribers for the quarter, bringing its quarter-end subscriber base to 9.4 million, a 6 percent decrease from a year ago. Financial results for the second quarter include consolidated operating revenues of $969 million, a 23 percent [yoy] decrease compared to the second quarter of 2013; consolidated adjusted OIBDA loss, which excludes the impact of non-cash asset impairments, restructuring charges and other unusual items, of $137 million; and a consolidated operating loss of $504 million. For the second quarter of 2014, the Company generated a net loss from continuing operations of $629 million, or $3.65 per basic share. Capital expenditures were $123 million for the quarter.
While we have seen progress on some operational metrics, our financial performance continues to reflect the impact of the deterioration in our revenue base," said Juan Figuereo, NII Holdings' executive vice president and chief financial officer. "We have put plans in place to stabilize our revenues and improve our profitability, and we are taking more aggressive actions to reduce our costs and balance our investments in growth against the increasing pressure on our liquidity. We also continue to work with our advisors to identify and evaluate potential strategic transactions and have engaged in a series of productive discussions with holders of various series of our senior notes regarding a potential consensual restructuring of our balance sheet.
As a result of the Company's financial performance in combination with the potential impact of its inability to satisfy certain financial covenants under our existing debt obligations, the Company will likely find it necessary to file a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in order to implement a restructuring of its obligations on a stand-alone basis or in conjunction with one or more potential strategic transactions as disclosed in greater detail in the Company's Quarterly Report on Form 10-Q for the second quarter that was filed with the Securities and Exchange Commission."
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