SCHAUMBURG, Ill., Aug. 4 – LAWFUEL – The Law News Network — Motorola, Inc.
(NYSE: MOT) announced that the company has successfully taken steps to enforce
its approximately $2.5 billion arbitration award against the Turkish cellular
phone operator, Telsim Mobil Telekomunikasyon (“Telsim”).
On June 13, 2005, a panel of arbitrators from the Zurich Chamber of
Commerce issued a final award (“the Final Award”) in the arbitration pending
between Telsim and Motorola Credit Corporation (“MCC”) concerning the amounts
due by Telsim to MCC under the financing arrangements between the parties.
Telsim had borrowed nearly $2.0 billion from Motorola for the financing of a
Motorola-constructed cellular telephone system and has failed to pay Motorola
despite the system’s operational success. It has been reported that the
system now has approximately 8 million subscribers and is the second largest
operator in Turkey. The arbitral panel rejected Telsim’s defenses and, after
three years of contested proceedings, issued an award now worth approximately
$2.5 billion (including interest) in Motorola’s favor against Telsim; however,
Telsim has continued to refuse to pay Motorola.
On June 27, 2005, the Supreme Court of the Canton of Zurich, Switzerland
confirmed that Telsim had not sought to appeal the award, with the effect that
the award is final and enforceable.
As a result, Motorola has begun to enforce the Final Award worldwide. By
August 3, 2005, courts in the United States and the United Kingdom granted
Motorola’s request to attach the international roaming and interconnect
revenues Telsim has earned in those countries. International roaming allows
mobile phone users to make calls and utilize other services while they are
traveling outside their home country. International interconnect services
allow land-line callers to connect with mobile phone users in other countries.
As the result of the decisions from the U.S. and U.K. courts, Motorola will be
able to attach and/or freeze the monies other carriers would have otherwise
paid to Telsim for international roaming and interconnect services.
Because Motorola’s claim is not against the carriers, this order will not
effect in any way international roaming and interconnect services — it will
also be cost neutral.
As previously announced, Motorola is continuing aggressively to enforce
the judgment for $2.13 billion rendered on behalf of Motorola against the Uzan
family of Turkey for perpetrating a massive fraud against Motorola relating to
the Telsim loans. As previously announced, the United States Supreme Court
denied the Uzans’ petition for a writ of certiorari with respect to this
judgment on May 16, 2005, thereby ending all the Uzans’ rights to further
appeal of the judgment rendered by Judge Rakoff of the United States District
Court for the Southern District of New York.
Motorola is a Fortune 100 global communications leader that provides
seamless mobility products and solutions across broadband, embedded systems
and wireless networks. In your home, auto, workplace, and all spaces in
between, seamless mobility means you can reach the people, things and
information you need, anywhere, anytime. Seamless mobility harnesses the power
of technology convergence and enables smarter, faster, cost-effective and
flexible communication. Motorola had sales of US $31.3 billion in 2004. For
more information: http://www.motorola.com .
Web Site: http://www.motorola.com