Motorola Inc. said the Court of Appeals of England and Wales dismissed a number of appeals brought by Cem Uzan and Aysegul Akay, members of Turkey’s Uzan family, upholding Worldwide Freezing Orders. The court also stayed its decision to discharge the Worldwide Freezing Orders against Kemal and Hakan Uzan.
Motorola said the decision will help ensure that up to $800 million of the Uzans’ assets worldwide will be preserved pending enforcement of a judgment that is expected to be issued by the U.S. District Court for the Southern District of New York regarding Motorola’s fraud claim against the Uzans.
The Uzans are in a legal battle with Motorola and Nokia in both the United States and the United Kingdom regarding about $3 billion in loans Motorola and Nokia granted the operator in vendor financing and Telsim’s inability to repay the debt. Motorola has sued Turkish mobile operator Telsim, owned by the Uzan family, for violating the Racketeer Influenced and Corrupt Organizations law. The Uzan family claims that it plans to pay back the debt through a rescheduled program under Swiss arbitration.
The Court of Appeals rejected the appeals of various lower court decisions relating to the appropriateness of the freezing orders, orders requiring the Uzans to attend cross examination on their assets and the length of prison terms imposed in light of their contempt of court.
In May, the Uzan family took the matter public with an advertisement in The Wall Street Journal, alerting Motorola shareholders to alleged risks the U.S.-based company took in doing global business and granting vendor financing.
This latest court win for Motorola was much needed after the U.S. Court of Appeals for the 2nd Circuit in March upheld the Uzans’ contention that U.S. federal courts lack jurisdiction over the case.
