Copenhagen, 2011-01-20 09:13 CET (GLOBE NEWSWIRE) -- DPTG has now also initiated enforcement proceedings against TPSA in Germany with the Higher Regional Court of Munich.
In November 2010, DPTG initiated enforcement proceedings against TPSA in Poland and the Netherlands and in January 2011 also in the UK.The enforcement proceedings are part of several initiatives that DPTG will take to collect the DKK 2.9 billion, which were awarded to DPTG on September 3, 2010 for phase 1 of the DPTG/TPSA case. Despite the fact that the award is final and legally binding, TPSA has not paid the amount due within the 14-day deadline established by the Arbitration Tribunal.
GN’s share of the award for phase 1 is approximately DKK 2.1 billion (before tax and after deducting capitalized legal fees).
TPSA is the largest telecommunications group in Central Europe with a strong financial position. Currently, France Telecom owns around 50% of TPSA. The French state has an ownership share of around 27% in France Telecom.
TPSA's failure to comply with the September 3 decision of the Arbitration Tribunal is a breach of the legally binding ruling from the Arbitration Tribunal as well as the contract between TPSA and DPTG. By failing to pay in accordance with the decision rendered by the Arbitration Tribunal, TPSA is adding further costs to themselves and their shareholders, more specifically around half a million Danish kroner a day in interest.
Additionally, TPSA is expected to incur significant additional costs as a consequence of DPTG’s enforcement activities, as the losing party is liable for court fees and legal fees for both parties. In Germany alone, court fees and opposing counsel’s fees will amount to around DKK 10 million if the enforcement case is ultimately brought to the Supreme Court.
DPTG will continue its initiatives to ensure full payment of the DKK 2.9 billion for phase 1 of the arbitration case.
For further information, please contact:
Mikkel Danvold
VP, IR & Communications
GN Store Nord A/S
Tel:+45 45 75 02 71
