Turkey’s Telsim officers ordered to appear in Cyprus court

Four officers of Telsim Mobil Telekommunikasyon Hizmetleri A.S., Turkey’s second largest mobile phone operator have been ordered to appear in a Nicosia court to be cross-examined in an ongoing case filed by a Cyprus based company according to which Telsim’s international roaming income has been frozen.

Last year, in a landmark decision, a Cyprus court granted an interim order request filed by Cyprus-based Rosamara Trading Ltd. against Telsim Mobil demanding full payment on over USD 738 mln in bearer promissory notes issued by Telsim in 2003.

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

The interim order also bars 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.

In the ongoing case, the four Telsim officers (David Graham Hughes, Mehmet Tasaltin, Maruf Zenger and Gokce Guler Sirin) submitted written affidavits challenging the interim order and the charges filed by Rosamara.

In response to a petition filed by Michaelides, the four officers have now been ordered to appear in a Cyprus court to be cross-examined by Michaelides, otherwise they risk arrest and asset confiscation.

Michaelides told the Financial Mirror that the case may have political implications once the Telsim officers appear before a Cyprus judge for cross-examination. The fact that the court order may be delivered by courier mail is seen as a positive development for the Cypriot side, since it accelerates the whole process.

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. In 2007, the SDIF conducted a public auction of Telsim’s assets and received bids from telecom groups in Europe, the Middle East and Russia. The winning bid of USD 4.5 bln was submitted by British telecom giant Vodafone.