Menatelecom in plea over bank guarantee
Manama, April 2, 2013
Bahrain-based telecom operator Menatelecom has filed a case requesting it to freeze a BD623,000 ($1.62 million) bank guarantee concerning an agreement signed with Batelco to share connection network.
The case filed in the Urgent Matters Court has been adjourned for today to hear the defendant's attorney, according to a report in the Gulf Daily News, our sister publication.
Menatelecom had signed an agreement to share interlink information system with Batelco.
Batelco, a leading telecom services provider in the kingdom, installed necessary equipment at Menatelecom premises, but Menatelecom moved to a new location three years later and asked Batelco to shift the equipment to the new premises.
Batelco considered that with such a request the agreement has been cancelled while it was valid for 10 years. Batelco also made reservation on the bank guarantee relating to the penalty clause stipulated in the contract in case the agreement has been cancelled.
Menatelecom said it didn't cancel the agreement but only demanded the equipment be shifted to the new location and urgently requested the court to freeze the bank guarantee until the case is settled. – TradeArabia News Service