Creditors may go after BenQ

Creditors of bankrupt BenQ Mobile have filed claims of more than Euro 1.2 billion and are weighing whether to go after BenQ Corp.

True to the saying "when it rains, it pours," BenQ could find itself being sued by creditors of its failed mobile-phone venture in Germany.

At a meeting in Munich, insolvency administrator, Martin Prager, said about 4350 creditors of bankrupt BenQ Mobile GmbH & Co. OHG filed claims amounting to more than Euro 1.2 billion ($US1.6 billion) and had asked him to examine whether they could require the Taiwanese parent company to meet their demands.

Prager, in a statement, referred to the issue as "extraordinarily complex".

The possibility of BenQ Mobile creditors going after BenQ adds to a growing list of setbacks for the Taipei manufacturer.

On Tuesday, chairman, K.Y. Lee, offered his resignation over losses caused by the company's inability to make its former German mobile phone subsidiary profitable. Even though BenQ's board of directors refused to accept the offer, pressure on Lee to turn around the company remained high.

A week earlier, Taiwanese prosecutors raided the company's offices and hauled away three executives for questioning over alleged insider stock trading related to when it revealed losses incurred from BenQ Mobile. The Taoyuan District Prosecutor's Office alleges that some company executives sold shares of stock ahead of announcing a loss in the first quarter of last year, caused by troubles related to its takeover of BenQ Mobile. BenQ's share price plunged after the announcement.

Prager estimates the total assets of BenQ Mobile to be around Euro 300 million, far below the group's demands and even possibly not enough to cover remaining personnel and legal costs.

Of the 4350 creditors who have filed claims, more than 3500 are former employees, seeking up to Euro 27 million in compensation.

Attempts earlier this year to find an investor for bankrupt German mobile-phone maker failed, resulting in negative publicity for both Siemens and BenQ.

In June 2005, Siemens agreed to sell its money-losing mobile phone manufacturing business to BenQ, due to disappointing world sales of its handsets and high product costs. But in August 2006, the new owner announced plans to cease investment in the German sites after concluding they were uneconomic.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Blau

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?