Cambodia's Bankrupt Mfone Debts Exceed Assets
Published on: 28th Mar 2013
Note -- this news article is more than a year old.
Cambodia's bankrupt mobile network operator, Mfone had assets of just USD105 million, compared to liabilities of USD159 million it was revealed this week.
The shuttered network is facing a number of lawsuits over unpaid bills, mainly from Huawei, and unpaid wages from former employees.
At a meeting of the creditors earlier this week, most of them agreed to lift injunctions barring asset sales so that the court-appointed liquidator can try to recover as much as possible to pay off the debts.
The remaining creditors are haggling over who gets priority when the resulting cash is handed out. The former employees, who are collectively owed around USD4.4 million automatically go to the top of the list for payouts.
Liquidator Ouk Ry told the Phnom Pen Post he is working closely with all concerned parties but would not provide any details. "Now I cannot say anything because I have a headache, we are not only dealing with workers but also with many other concerned parties," he said.
Mfone agreed to migrate its customer base to Mobitel when it closed down - and that may be challenged as the customer base would have had a financial value had the migration taken place after the bankruptcy was declared.
Mfone filed for bankruptcy in January after its Thai based parent company failed to complete a deal to sell the company to INT Management Service.
On the web: Phnom Pen Post