Dues:ZTE initiates arbitration proceedings against Loop Mobile

BANGALORE, INDIA: ZTE Corporation, a publicly-listed global provider of telecommunications equipment, network solutions and mobile devices, today announced that it has initiated legal proceedings against Loop Mobile for the retrieval of its outstanding payments.

Yuan Shen, 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 about this. To secure our business interests we have moved an additional application to the Bombay High Court for the recovery of the unpaid dues." ZTE has approached the Mumbai High Court to grant interim measure of protection for securing the outstanding amount payable to ZTE Corporation from Loop Mobile, further directing Loop Mobile to deposit the amount in the form of fixed deposit or security deposit with the Honourable High Court of Bombay. The amount to be deposited in the Court shall be equivalent to the total claim of ZTE Corporation from Loop Mobile.

Additionally, ZTE has requested the Honourable Court of Bombay to pass an order directing attachment of all sums payable by Bharti Airtel to Loop Mobile and restraining Loop Mobile to sell its business to any party without permission of the court. Loop Mobile was in a business agreement with ZTE Corporation and last year, the company filed a petition against Loop Mobile in the Bombay High Court due to compliance issues wherein the latter failed to clear dues worth $ 25 million.