Orascom granted another freeze injunction against Syrian partner
An Austrian Court has issued a freeze injunction against the Syrian-based Drex Technologies, ruling in favor of Egyptian telecommunications conglomerate Orascom Telecom Holding (OTH). In what is the latest development in the litigation process between OTH and its local partner company in SyriaTel Mobile Telecom, the Austrian court has ordered a block on all Drex Technologies accounts in the Arab Bank in Vienna, reported Al-Alam Al-Yaum.
A British court issued a similar ruling in October, freezing the worldwide assets of Drex Technology, up to the value of $57 million. In May-end, a Syrian court has ordered a freeze on the local assets OTH. The verdict was issued in a dispute over a $49 million payment due to Syriatel. On April 6, 2002, Syria’s Drayah Civil Court appointed two official receivers to manage Syriatel. OT then appealed against the ruling and announced that it was involved in a management dispute with Syriatel.
In early 2001, the Syrian government awarded a 15-year build, operate and transfer (BOT) GSM license to Syriatel, a joint venture 25 percent owned by OT and 75 percent held by various Syrian investors. A second GSM network Spacetel is operated by Investcom, a Lebanese-Syrian joint venture.
Under the terms of the contract, OT was required to pay $20 million in frequency fees for the GSM 900 MHz network, and an additional $15 million for the GSM 1800 MHz frequency bands. The contract also included a revenue sharing agreement, under which OT is to transfer 30 percent of the revenues of the first three years, 40 percent of revenues generated of the second three years and 50 percent of the revenues of the remaining contract period. — (menareport.com)
© 2002 Mena Report (www.menareport.com)