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NII Holdings Chief Denies Giving Creditors Sweetheart Deal in Bankruptcy Case

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The chief executive officer of Nextel's bankrupt Latin American arm denied giving bondholders a sweetheart deal as he testified yesterday on the company's $4.35 billion restructuring plan, Reuters reported yesterday. NII Holdings Inc, which operates the Nextel brand in Brazil, is trying to emerge from chapter 11 protection under a plan to hand control to Aurelius Capital Management and other holders of $4.35 billion in bonds. The plan is scheduled for four days of trial in bankruptcy court, where one creditor faction alleges NII was a doormat for creditors who designed the plan themselves. Steven Shindler, NII's chief executive officer, testified yesterday that he rejected multiple restructuring proposals he deemed unfair, and initiated a meeting at NII's Reston, Va.-based headquarters with Aurelius boss Mark Brodsky. "I wouldn't call it friendly, but it was a healthy dialogue," Shindler said.