Court grants interim order against Telsim

Politics may affect the case

A Nicosia court has granted an interim order requested by a Cyprus based company against Turkish telecom giant Telsim Mobil demanding full payment on over USD 738 mln in bearer promissory notes that were issued by Telsim in 2003.

The law firm of Michael Michaelides, representing the interests of Rosamara Trading Ltd., secured court approval ordering Telsim from transferring, leasing or mortgaging its assets.

The interim order also orders Telsim from collecting or demanding payment of any sums of money up to USD 738 mln generated from SMS, international, GPRS, voice mail and roaming revenues from up to 20 telecom companies operating in the EU including most Vodafone subsidiaries.

Politics come into play

Michaelides told the Financial Mirror that the case may have political implications if during the next scheduled date of May 8, Telsim decides to appeal against the interim injunction order.

“If they do, then it will mean Turkey recognises Cyprus. If they don’t show up, then the interim order may become permanent,” he said.

As reported earlier by the Financial Mirror, Rosamara sued Telsim in a Cyprus court demanding full payment on over USD 738 mln in bearer promissory notes that were issued by Telsim in 2003. The notes matured earlier this year and are secured by the assets and roaming income of Telsim, Turkey’s second largest cell phone operator.

Telsim’s operations were taken over by Turkey’s state deposit insurance fund (SDIF) in 2004, after the bonds were issued and entered on the corporate books.

Several months ago the SDIF conducted a public auction of Telsim assets and received bids from telecom groups located in Europe, the Middle East and Russia. The winning bid of USD 4.5 bln was submitted by British telecom giant Vodafone.