Cambodian Administrator to Sell of Bankrupt Mobile Network Assets
Published on: 8th May 2013
Note -- this news article is more than a year old.
The remaining assets of Cambodia's bankrupt mobile network, Mfone are to be sold off by the administrator in an effort to recover the USD160 million that would be needed to settle the company's debts.
The company is reported to now have over 1,000 creditors, including former employees, making claims against the assets.
However, the assets are unlikely to fetch more than USD110 million, although a dispute over the transfer of some 400,000 customer accounts to a rival mobile network may generate some additional revenues.
The court appointed administrator, Ouk Ry has set up a committee of nine of Mfone's major creditors to handle the disposals.
Last month, Huawei agreed to life an injunction it had secured against the bankrupt company paving the way for the administrator to start selling off its assets. Huawei has a claim for around USD65 million against the company.
Mfone had 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.