Bankrupt BenQ Mobile Sues Parent Again

The mobile phones that once flowed from bankrupt German handset manufacturer BenQ Mobile GmbH & Co. OHG are being replaced by lawsuits.

On Friday, the company's insolvency administrator Martin Prager filed a further lawsuit against BenQ Corp., after initiating two lawsuits against the Taiwanese manufacturer last month.

BenQ Mobile's insolvency was triggered after its parent company BenQ Corp. decided last year to cease investment in the German operations, formerly owned by Siemens AG. The German electronics and engineering giant had agreed to sell its money-losing mobile phone manufacturing business to BenQ in June 2005, due to disappointing global sales of its handsets and high product costs. But the Taiwanese manufacturer failed to turn around the handset business and, after deciding to call it quits, has since been the target of intense litigation.

Prager is now demanding ,26 million (US$36 million) to pay for bonuses to executives of BenQ Mobile that the parent company had approved but its mobile subsidiary ended up paying.

In July, the insolvency director filed two separate lawsuits for more than ,80 million for certain account payables made by BenQ Mobile to its parent company in 2006.

BenQ has considered filing counterclaims against the July two lawsuits.

Separately, several German politicians are seeking support to apply for funds from the European Union globalization fund in a move to support former BenQ Mobile employees