Harneys advise in notable insolvency matter involving liquidation of C-Mobile Services

Harneys acted for Huawei Technologies Co Ltd, the world’s largest telecommunications equipment maker and supplier, in a dispute concerning the appointment of a liquidator of C-Mobile Services Ltd. Huawei is a substantial creditor of C-Mobile Services and the case raised important questions concerning the construction of arbitration clauses in underlying contracts, the deployment of winding-up proceedings and their efficacy in West Africa.

Harneys successfully resisted two applications at first instance designed to frustrate the appointment of liquidators over the C-Mobile Services. Both decisions were the subject of appeals which were also successfully resisted in the Court of Appeal.

Lead partner Andrew Thorp commented that the Appeal Judgments provided important guidance on the appropriate legal test to be applied on applications to set aside statutory demands; the construction of arbitration clauses in underlying contracts; and the interface of applications to stay legal proceedings for arbitration and winding up proceedings, including BVI policy considerations.

After the appeals were dismissed and the stay on the liquidation application was listed, on 13 November 2015 Harneys was successful in having liquidators appointed over C-Mobile.