14 DAY TRIAL // Insolvency proceedings have been opened against german mobile phone manufacturer BenQ Mobile, on Monday, after no buyer was found for the company.
BenQ filed for insolvency at the end of September and under German law had three months' grace after filing for bankruptcy before the beginning of formal insolvency proceedings. Because the expiration of the term - which caught them without any investors willing to buy the company - expired on the 31st of December, the company could therefore not avoid the opening of the insolvency procedure.
However, the top management of BenQ Mobile Group were announcing earlier in October that their highest priority was to secure the continuation of the mobile phone business, and was somewhat optimistic in regards to that. "BenQ Mobile disposes of unique technological competences which make the company attractive to investors" Martin Prager, the preliminary insolvency administrator said. According to Financial times there were two interested buyers, who in the end have shown no signs of closure whatsoever.
While BenqMobile's collapse might be happening due to a very competitive handset market, a number of analysts have also blamed the company's management. "Many of the product launches were fairly poor," said Windsor Holden at consultancy firm Analysis, back in September. "Even when the product seemed promising, the company failed to launch on time. It's been a mess, frankly."
More information on BenQ Mobile's future is expected to be released very soon.