Top German government officials were conferring yesterday to save mobile-phone company MobilCom from insolvency amid reports the government is planning a US$200-million bail-out plan.
But sources were quoted by German media as saying no insolvency application was likely to be filed before some time next week to rescue the firm after major debt-ridden shareholder France Telecom pulled out.
The government and the northern state of Schleswig-Holstein, where the company is based, are considering US$200 million in credit in a stopgap measure to save 5,000 jobs immediately, according to Bild am Sonntag newspaper.
A crisis meeting held yesteday between German Economics Minister Werner Mueller and company executives, with Chancellor Gerhard Schroeder calling for every effort to save the firm from collapse. The economics ministry, Schleswig-Holstein, MobilCom directors and bank officials were discussing "the possibility for a short-term solution," a government spokesman said.
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