Cellcom to file liquidation request against Golan Telecom

29 Nov 2016

Israeli mobile network operator Cellcom has confirmed the filing of a request to appoint an interim liquidator to Golan Telecom, following the latter’s failure to pay due amounts for national roaming services. At the end of last week (27 November) Cellcom revealed that Golan had rejected demands to pay the ILS600 million (USD155.5 million) it reportedly owes the former, in response to which Cellcom said it would ‘continue the legal proceedings already commenced against Golan and may take additional measures, including filing a liquidation request against Golan’. Having now confirmed that it will also file a liquidation request against Golan tomorrow (due to procedural reasons), Cellcom noted that it anticipates that a ‘substantial reduction of the future revenues from Golan will have a material adverse effect on [its] revenues and results of operations’.

Cellcom had confirmed that it was in advanced stages of negotiations for a possible network sharing agreement with a third party interested in purchasing Golan; it noted that these negotiations could also resolve past national roaming payment differences with Golan. However, it had highlighted the fact that for these talks to mature into an agreement, it remained dependent on the unnamed third party and Golan reaching an agreement as to the purchase of Golan, as well as Golan and Cellcom reaching certain agreements related to the parties’ existing Share Purchase Agreement (SPA) and National Roaming Agreement.

Israel, Cellcom, Golan Telecom