China’s ZTE is suing the Indian mobile network, Loop Mobile seeking repayment of USD25 million worth of outstanding invoices.
The lawsuit was filed late last year, but the company was back in court in the Bombay High Court to accelerate the payment.
ZTE’s lawyers said that they are seeking to have the monies paid before Loop Mobile completes a previously announced deal to sell the company to Bharti Airtel.
Under the agreement, Loop Mobile’s 3 million subscribers in Mumbai will join Airtel’s over 4 million subscribers in the same region.
That deal, worth USD113 million could theoretically be structured in such a way as to leave the holding company owing ZTE the debt, but itself having no assets as they would have been transferred to Bharti Airtel.
ZTE is seeking to block any deal that might make it impossible to recover the debt.
“To secure our business interests, we have moved an additional application to the Bombay High Court for the recovery of the unpaid dues,” ZTE Corporation Legal Attorney Yuan Shen said in a statement.
ZTE has also sought a court order directing attachment of all sums payable by Bharti Airtel to Loop Mobile and restraining Loop Mobile to sell its business to any party without permission of the court.
Loop Mobile has not commented on the legal action.