Telsim, Turkey’s second largest GSM network has recently defaulted on vendor financing loans to both of the companies.
The move may have been prompted by a capital increase at Telsim, which had the effect of reducing Motorola’s security on the loan from 66% of the equity to just 22%. Telsim should have repaid $728 million of its vendor loan to Motorola, and $250 million to Nokia.
