Logo of Phnom Penh Post newspaper Phnom Penh Post - Huawei withdraws injunction

Huawei withdraws injunction

Huawei withdraws injunction

7 mfone huawei
A cyclist passes in front of the boarded-up Mfone office in Phnom Penh. Photograph: Heng Chivoan/Phnom Penh Post

Huawei Technologies (Cambodia) Co agreed yesterday to withdraw its injunction against Mfone in order to pave the way for a court-appointed administrator to sell the bankrupt company’s assets and compensate its many creditors.

Aaron Zheng, Huawei’s legal manager, agreed to withdraw the court injunction and asked the administrator to find buyers as soon as possible because “the longer they delay the sell-out, the cheaper assets are,” he said.

Along with other creditors, Huawei representatives expressed concerns that the assets would be sold below market price.

“We think the price now will be much less than the price in the book,” he said.

“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.”

Ouk Ry, the government-appointed administrator to oversee the sale of Mfone’s assets, said that after all the injunction orders were lifted, officials would be able to finalise the sale of assets, allowing a payout to the various creditors.

“After we have cleared the way, we will approach the buyers and begin the bargaining – so it can still take few months to complete,” he said “First creditor, according to the law, is employees,” he said, adding that he couldn’t predict the value of all the assets.

Paul M Tithyasak, senior finance adviser to the administrator, said Mfone’s total assets are worth about $107 million. Among those assets are 1,037 base station towers that cost about $100,000 each.

He said those assets were counted on February 15 and valued based on the recorded book value, while the current market value would be lower.

Mfone creditors include Huawei, NEC, Cambodian Fibre Optic Cable Network, Vatana and Eltek, prepaid card dealers, tower land owners and employees, according to Ry.

With Huawei having lifted its injunction, the matter is now left to the courts to proceed.

Sin Visal, Phnom Penh Municipal Court judge, said the outcome of the case would depend on the decision of his council of judges.

“After this meeting, I will take this case to consider in the group,” he said.

Nim Sonyda, employees’ representative, said he has also requested that Eltek withdraw its injunction order to allow for the quick selling of assets.

“I ask for the judge to consider this case as soon as possible,” he said.

MOST VIEWED

  • Reuters: US Embassy fired 32 staff members for sharing pornography

    The United States Embassy in Phnom Penh has fired 32 non-diplomatic staff members who were allegedly caught exchanging pornographic images and video, including of minors, according to the news agency Reuters. Four sources, who spoke on condition of anonymity, told Reuters the content was shared in

  • Our 2018 guide to spending Khmer New Year in Phnom Penh

    Khmer New Year festivities are upon us. For the next few days, travellers will be making their way to their home provinces to eat, celebrate, play traditional games and visit a pagoda with offerings. If you will be staying put in Phnom Penh for the

  • US think tank warns of China's 'ulterior motives'

    A US think tank on Tuesday warned that spreading Chinese investment in the Indo-Pacific follows a pattern of leveraging geopolitical influence at the expense of the nations receiving investment, including Cambodia. The report looks at a sample of 15 Chinese port development projects, noting that the

  • More than three tonnes of ivory reportedly bound for Cambodia seized in Mozambique

    A total of 3.5 tonnes of ivory reportedly bound for Cambodia was seized by authorities in Mozambique late last week, according to the NGO Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES' information was based on a report from the