Court launches inquiry into KPNQwest’s 2002 bankruptcy

2 Jan 2007

A Dutch court has launched an investigation into the 2002 bankruptcy of KPNQwest, the joint venture of local telco KPN and Qwest, writes Reuters. In a ruling, the Amsterdam-based Enterprise Court said that KPNQwest may have ‘misled its investors and bankers’ when it published its results in 2001. The ruling could strengthen the case of a group of KPNQwest investors which may pursue financial compensation, subject to the court’s findings. KPNQwest was a wholesale telecoms joint venture for corporate users, formed by US carrier Qwest and KPN in the Netherlands. It was listed in 1999 but went bankrupt in 2002 after the bursting of the telecoms and technology bubble. In June last year KPN agreed to settle a US securities class action suit related to the bankruptcy, but Dutch shareholders activist group VEB and some KPNQwest shareholders have continued their case at the Enterprise Court.

Netherlands, KPN, Qwest Communications International