Huawei Lifts Injunction Against Bankrupt Cambodian Mobile Network
Published on: 9th Apr 2013
Note -- this news article is more than a year old.
Huawei has agreed to life an injunction it had secured against the bankrupt Cambodian mobile network, Mfone, paving the way for the administrators to start selling off its assets.
Aaron Zheng, Huawei's legal manager, agreed to withdraw the court injunction and asked the administrator to find buyers as soon as possible as a delay would only reduce the value of the assets.
Huawei is suing the company for around USD65 million in unpaid invoices. There are a number of other creditors, including USD4.4 million in unpaid wages for the redundant staff.
It was recently suggested that at the time it collapsed, Mfone had assets of just USD105 million, compared to liabilities of USD159 million.
Zheng told the Phnom Pen Post: "We don't know yet how what percentage we will get. We don't expect that we will receive our demand, as there are a lot of creditors. It is bankrupt, so how can we get $65 million? We already accept the loss."
Mfone has struggled in the Cambodian market, which is characterized by a high number of networks competing against each other.
The Thaicom group which is the majority shareholder had tried to seek an extension on the sale agreement due to difficulties with debt restructuring, but eventually had to seek the bankruptcy order. Thaicom is the company controlled by Thailand's former Prime Minister, Thaksin Shinawatra.
A controversial deal to transfer Mfone's customers to Mobitel was reportedly signed off by the Prime Minister personally before the company finally collapsed.
On the web: Phnom Pen Post