PHILIPSBURG – The Court of First Instance of Sint Maarten has ordered the lifting of all bank account seizures imposed on telecommunications company Telem, ruling that the measure had effectively brought the company's operations to a standstill.
The accounts were frozen on June 12 following a request by telecommunications provider Flow, which is seeking to recover more than 1.2 million Caribbean guilders in an ongoing commercial dispute.
According to the court, the seizure meant that Telem could only access funds deposited into its accounts after the attachment was imposed. As a result, the company experienced significant difficulties in paying employees and suppliers, jeopardizing its day-to-day operations.
Dispute Over Outstanding Telecom Charges
Flow claims that Telem owes 2,238,806.96 Caribbean guilders for interconnection and cross-over telecommunications services provided during 2021 and 2022.
The two companies have long relied on each other's telecommunications infrastructure in both Sint Maarten and Curaçao, periodically invoicing one another for services such as network interconnection.
Telem acknowledged that outstanding balances once existed but argued that these debts had since been offset by later claims against Flow. According to Telem, the offsets include credit notes issued in November 2023, leaving no outstanding balance owed to Flow.
Full Trial Needed
The court concluded that Flow's original claim appears sufficiently plausible at this stage. However, it also found that Telem's defense—that the debt had been extinguished through setoff—requires further examination during a full trial on the merits.
As a result, the judge ruled that the dispute should proceed in substantive proceedings, where both parties will have the opportunity to present detailed evidence.
Business Continuity Took Priority
In deciding whether the seizure should remain in place, the court determined that the damage caused to Telem's business outweighed Flow's interest in maintaining the attachment.
The judge found that the freezing of all bank accounts had severely impaired Telem's financial operations and threatened the company's ability to continue providing essential services.
Although the seizure has been lifted, Flow retains the right to pursue its claim through the main court proceedings.
The court also ordered Flow to reimburse 2,748.50 Caribbean guilders in legal costs incurred by Telem. The ruling is immediately enforceable, even if an appeal is filed.