Chinese telecom equipment vendor ZTE Corporation has initiated legal proceedings against Loop Mobile to recover outstanding payments worth Rs 1.5 billion.
Earlier in 2013, ZTE Corporation had filed a petition against Loop Mobile in the Bombay High Court after the operator failed to clear pending dues accruable to the vendor. The company has once again approached the court to grant interim measure of protection for securing the outstanding amount. The equipment vendor has also requested the court to direct Loop Mobile to deposit the amount in the form of fixed deposit or security deposit with the court. Additionally, ZTE Corporation has also sought a restraining order against the mobile operator selling its business to any party without the court?s permission.
Commenting on the matter, Yuan Shen, legal attorney, ZTE Corporation, said, ?It has come to our notice that Loop Mobile is entering into a business deal to transfer its operating assets (subscribers) to Bharti Airtel, without keeping us informed. To secure our business interests we have moved an application.?
In February 2014, Bharti Airtel had entered into an agreement with Loop Mobile to acquire latter?s three million subscribers along with the company?s tower portfolio. The deal estimated to be worth seven billion is subject to regulatory and statutory approvals.
