MUNICH, Germany BenQ Mobile GmbH has officially filed for bankruptcy following the decison of its Taiwanese shareholders to terminate financial support for the German subsidiary.
The insolvency papers were filed Friday (Sept. 29) at a Munich court. A court spokesperson acknowledged that the filing has been accepted.
The court has appointed lawyer Martin Prager to handle the insolvency, the spokesperson said. She was not able to supply a timeline.
According to German law, the insolvency administrator has the capacity of a CEO. Prager was not available for a comment on his strategy, but a BenQ spokesperson explained that he was meeting the management in order to survey the situation.
Yesterday, the BenQ corporate management had decided to terminate all payments to BenQ Mobile GmbH, its German subsidiary that acquired by Siemens' handsets operation about a year ago. The company forms the biggest part of BenQ's entire mobile phone activities.
BenQ intends to continue its mobile handset business from its Taiwanese headquarters.
In the meantime, politicians of the two German federal states of Bavaria and North Rhine-Westphalia announced support for the ailing company in its search for a solution for parts of the company or the entire entity. "We have already started talks with the Bavarian government", a BenQ spokesperson said. North Rhine-Westphalia Prime Minister Jürgen Rüttgers visited the Kamp-Lintfort plant and promised to help the workers find new jobs.
At the same time, he criticized the way the BenQ corporate management communicated its decision. Many employees only were informed by media news about the move to stop the payments. "This is not a good way to treat employees", Rüttgers said.