Insolvency begins against BenQ Mobile

No bidders come forward for the mobile arm of Taiwanese giant but firm could be still be rescued

Insolvency proceedings have been opened against BenQ Mobile, the German mobile phone arm of Taiwanese vendor BenQ, after administrators failed to find a buyer for the company and its 3,000-strong workforce.

BenQ Mobile emerged almost 18 months ago from the takeover of the mobile arm of Siemens.

In September, BenQ Mobile filed for insolvency citing "unsustainable losses" .

Under German law, a company has three months grace after filing for bankruptcy before formal insolvency proceedings begin. As no bidders came forward before the 31 December deadline, insolvency proceedings have commenced. However, an investor could still take over part of the business during the insolvency proceedings, a representative for the Munich court said.