BTel to sue angel investor who backed out

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The board of Business Telecom (BTel) is suing the angel investor who broke his promise to inject HUF 950 mln in the company despite the several written warnings. As a result preparations for a court case have begun, BTel announced today.

The troubled telco was placed under interim management early in December, a month after it was announced the investor, Timur Rahimkulov, would inject HUF 950 mln in the company.

Magyar Telekom is suing BTel for HUF 944 mln in unpaid bills, and a subscriber of the company's corporate bonds has launched a liquidation procedure against it. BTel said earlier that Rahimkulov chose not to inject capital in the company due to information on its business and liquidity position that he became aware of only after committing to the capital raise. The board argued that the investor was aware of these concerns when the commitment to raise capital in the company was made and said it would hold Rahimkulov to his contract.

Earlier, the National Bank of Hungary (MNB) suspended trade in BTel's shares and corporate bonds and fined it HUF 8.5 mln for a violation by the company of rules on extraordinary disclosures. It also ordered the firm to make an extraordinary announcement immediately but no later than the following working day. On Friday, before BTel made its announcement, the MNB fined the company an additional HUF 5 mln for the same violation. On Saturday, the MNB lifted the suspension of trade in BTel's shares and bonds.

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