Nokia Settles With Telsim

Nokia has reached a settlement in its claims against Turkish network operator Telsim for defaulting on loan repayment

August 30, 2005

1 Min Read

ESPOO, Finland -- Nokia has reached a settlement in its financial claims against the Turkish network operator Telsim subject to the successful sale of Telsim's assets. Under the terms of the arrangement with Telsim and the Turkish Savings and Deposit Insurance Fund (TMSF), which currently controls and manages Telsim's assets, Nokia will receive a settlement payment following the completion of the sale of Telsim's assets. The settlement is subject to the formal board approval of TMSF, and the amount of the settlement will depend on the final proceeds from the future sale of Telsim's assets.

Nokia sees this as a positive step in a consistent and cooperative approach to resolving the issue, and also trusts that it will facilitate a successful sale of Telsim's assets. Moreover, the agreement opens the way for the continued support for Telsim's operations that will benefit Telsim's subscribers, the Turkish government, and the overall Turkish telecommunications market.

Nokia's claims arose from Telsim's default on its repayment obligations under a loan facility related to network equipment delivered in 2000. In February 2004, the Arbitral Tribunal in Zurich fully approved the claim against the Turkish company.

Nokia Corp.

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