PEOPLEnet appeals bankruptcy lawsuit; suspends investment

15 Jun 2015

3G CDMA mobile network operator Telesystems of Ukraine, which provides services under the PEOPLEnet brand, is appealing against a lawsuit filed in the Kiev Economic Court by a creditor company demanding bankruptcy proceedings to recover debt, reports The lawsuit filed by a company named IR Initiatives was launched on 27 May, claiming that PEOPLEnet owed the plaintiff UAH372,000 (USD17.5 million), which is above the UAH365,000 threshold enabling bankruptcy proceedings to be launched under the law ‘On the reconstruction of solvency of the debtor’. PEOPLEnet’s president Michael Paikin said that the operator’s lawyers launched an appeal upon learning about the bankruptcy case, although at the same time the CDMA firm began paying dues to the plaintiff. Paikin appeared to dispute the amount claimed in the case file, agreeing that PEOPLEnet does have debt, but ‘in the tens of millions of hryvnia [UAH]’ as ‘a normal working process’, while adding that commercial operations will not be interrupted.

The PEOPLEnet president also disclosed that a proposal to raise investment for a CDMA-to-LTE migration project is currently on hold. Mr Paikin identified violent conflict in the east of Ukraine as a significant factor in suspending investment plans. In the breakaway regions of Donetsk and Lugansk PEOPLEnet had more than 100,000 subscribers before the outbreak of war, but now says it is unclear what will happen to the remainder of its network there.

Ukraine,Telesystems of Ukraine (PEOPLEnet),


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