Magyar Telekom sues BTel for HUF 944 mln

In Hungary

Budapest Stock Exchange (BSE) issuer Business Telecom (BTel) said late yesterday that Magyar Telekom was suing it for HUF 944 mln in service fees and related taxes, and an investor has initiated liquidation procedure against the company but a deadline given by the court has not expired.

BTel said that the Kecskemét court gave it 45 days to pay dues to an investor that has initiated liquidation procedures, and it plans to settle the debt during the period. BTel cited BSE regulations which requires an announcement in such a case only after a non-appealable ruling, explaining why it did not report the procedure.

BTel agreed in April with the investor in question to make principal and interest payment on a bond at a later date, adding that it had an obligation to buy 230,000 BTel ordinary shares related to the agreement.

The issuer noted that it made announcement on the above deal as well as on the late payment brought by Magyar Telekom to court before. (The earlier report did not mention the size of the claim.)

The announcement made on Wednesday also clarified an April option agreement and noted that the liquidity measure in the company's Q3 report, showing a 21-22% improvement in one year, was correct, and reflected the redemption of a bond. Missing some payment deadlines did not affect the liquidity measure which does not reflect the actual cashflow position but rather the change over a period, BTel said.

The BSE on Tuesday fined Business Telecom (BTel) HUF 3m and requested it to comply fully and on time in future with disclosure regulations and to immediately settle its debt towards the bourse. Last week the National Bank of Hungary fined the company HUF 3.5m for failing to comply with disclosure regulations.

About 10 days ago BTel's shares were removed from the bourse's main BUX and BUMIX index because of the shortfalls.

ADVERTISEMENT

Business confidence improves as consumer sentiment worsens Analysis

Business confidence improves as consumer sentiment worsens

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.