Tuesday, October 17, 2017

Court orders cellular dealer to pay $9m debt *

HOPEFUL: Sheldon Stephen


LOLLABEE Cellular Ltd, which was up until recently an authorised Digicel dealer, has been ordered by the High Court to clear an almost $9 million debt owed to the telecommunications giant from in-store bill payments, or risk the chance of having its assets seized.

The order was made last month, after Lollabee failed to enter a defence in a breach of contract lawsuit filed against it by Digicel, after Lollabee did not remit the full sum of monies collected on the company's behalf for the period December 2016 to March 2017.

Even though Lollabee had paid Digicel a total of $5,216,700, prior to the court action, it is still owing an additional $8,873,953.45. And despite the court making its ruling early last month, the debt is yet to be paid.

According to court documents, on November 21, 2013, by way of a partner dealer agreement, Digicel appointed Lollabee Cellular as one of its independent and exclusive dealers. The agreement stated that Lollabee would collect payments for telecommunications services from Digicel subscribers for six premises in San Fernando, Point Fortin, West Mall, Trincity, Princes Town and Siparia.

 

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