BenQ Mobile Administrator Sues Parent Company

The insolvency administrator for BenQ Mobile Germany, Martin Prager is suing the parent company, BenQ for a further US$38 million for bonus payments which were promised to the company's German senior managers, which were actually paid by the subsidiary, BenQ Mobile. It is possible that if BenQ does not transfer the funds due to BenQ Mobile, that the former managers could be liable for the debt.

BenQ Mobile was formerly Siemens Mobile, which was loss making when Siemens effectively paid Taiwan's BenQ to take the company off its hands. Despite considerable investments, BenQ was unable to turn the business to profit and closed the division last year.

BenQ, which is currently operating at a loss has previously denied the administrators claims.

Posted to the site on 13th August 2007