Board puts BTel under interim management

Telco

The board of directors of troubled Hungarian firm Business Telecom (BTel) voted unanimously to place the company under interim management on Monday, the minutes of their meeting show. 

The interim management will be in charge of daily operations at the company and they have been authorized to conduct talks with BTel's business partners. The board decided to hire an external auditor to review the company's books back to the start of 2013.

They also decided to prohibit the signing of any contracts or invoices generating liabilities without the consent of Timur Rahimkulov, an angel investor who is injecting HUF 950 mln into the company in exchange for equity that carries a veto right. 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 the company.

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