Nextel Unit May Seek Chapter 11 Bankruptcy

Nextel Communications Inc.’s international wireless-phone unit missed an $8.3-million principal payment to banks amid the Argentine economic crisis and said it may file for bankruptcy protection.

The unit, NII Holdings Inc., said it will review asset sales or reorganization under Chapter 11 after its Argentine subsidiary missed the payment Monday. It hired Houlihan Lokey Howard & Zukin Capital as its advisor, according to a Securities and Exchange Commission filing. Nextel receives 5% of its sales from NII, said WR Hambrecht analyst Peter Friedland.

Shares of Reston, Va.-based Nextel rose 32 cents to close at $11.67 on Nasdaq.