Pacifictel ordered to pay up or give up Telecsa stake

23 Jun 2003

State run fixed line telco Andinatel has asked its sister company Pacifictel to pay the USD15.8 million it owes on its 25.5% stake in their joint mobile venture Telecsa, or surrender the holding. Andinatel paid for Pacifictel’s share in the cellco up front without obtaining any kind of repayment guarantee. Pacifictel is now in financial trouble following the closure of local bank Filanbanco, which it claims resulted in the freeze of USD12 million of its funds.