Phones4U file for administration with U.K. court after contract losses

By Kali Hays

New York, Sept. 16 – Phones4U Finance plc filed for bankruptcy administration on Monday with the High Court of Justice of England & Wales, according to a news release.

The administration filing comes after Vodafone Ltd. and EE Ltd. decided not to renew network agreements with Phones4U due to terminate by Sept. 30.

Those network agreements represent 90% of the company’s connections, according to the release.

The company concluded that “there is no reasonable prospect of avoiding insolvent liquidation” and have “resolved to cease trading with immediate effect.”

The court appointed PricewaterhouseCoopers LLP as insolvency administrator in the case and company attorneys intend to hold a Tuesday call with holders of £430 million of 9½% senior secured notes due 2018 to give an update on the proceedings.

Phones4U is a mobile phone retailer based in Newcastle-under-Lyme, England.

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