The High Court of Justice in the British Virgin Islands has issued a freeze injunction against Drex Technologies. The ruling applies to any worldwide assets of the Syrian-based company up to the value of $57 million and is in favor of Orascom Telecom Holding (OTH) and Cylotel limited.
The court ruling is the latest development in the litigation process between Egypt's OTH—a regional operator of mobile telecom and Internet services—and Drex, its local partner company in SyriaTel Mobile Telecom.
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.
The latest court ruling stipulated that “Drex Technologies must not, by itself or through any of its directors, officers, partners, employees or agents, remove funds from any of its bank accounts or any of its worldwide assets up to a value of $57 million.”
“This applies to all its assets whether or not they are in its own name and whether they are solely or jointly owned, including all assets which Drex Technologies has the power directly or indirectly to dispose of or deal with as if it were its own,” it aqdded.
The ruling further cited, that Drex Technologies must, within three days of being notified of this order inform OTH and Cylotel’s solicitors of all its assets worldwide, giving the value, location and details of all such assets.
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)
