'HC authorises law firm to manage Etisalat DB'
UAE-based Etisalat Wednesday said the Bombay High Court has authorised a law firm to take care of the affairs of its Indian venture Etisalat DB Telecom Pvt Ltd. until the final winding up of the business is ordered.
New Delhi: UAE-based Etisalat Wednesday said the Bombay High Court has authorised a law firm to take care of the affairs of its Indian venture Etisalat DB Telecom Pvt Ltd. until the final winding up of the business is ordered.
Following the Supreme Court order cancelling its 13 licences in February, Etisalat had decided to shut down Etisalat DB Telecom (formerly Swan Telecom), affecting over 16.7 lakh mobile subscribers. Etisalat Mauritius, a subsidiary of Etisalat, has filed a winding-up petition.
"The Bombay High Court has named Solomon & Co, an Indian law firm, as the authorised person to manage Etisalat DB (EDB) pending the Bombay High Court's decision on the admission of the just and equitable winding up petition submitted by Etisalat Mauritius," the company statement said.
The authorised person will be the point of contact for all creditors, it said, adding that it is satisfied with the court's decision.
The company further said the authorised person will "protect the assets of Etisalat DB in advance of the intended liquidation and permit the payment of creditors where appropriate under Indian law."
On March 12, Etisalat had said, "Recent events have led to a complete breakdown in the relationship between Etisalat and its Indian partners, who face various criminal charges of corruption associated with Swan's acquisition of its UAS licences."
The company had also said it was no longer possible for Etisalat DB to continue its telecommunications operations since there was a lack of capital and the commercial position.