Yota Devices is declared bankrupt by a court of the Cayman Islands. This news did not come as a surprise to analysts, since branded smartphones sold too little. In addition, a big fault in the collapse of the company lies with the Singapore-based manufacturer Hi-p Electronics, which was responsible for the supply of screens to smartphones.
Yota Devices three years ago accused Singaporean colleagues of disrupting the supply of screens, because of which the plan for the supply of smartphones to the US market was thwarted. However, opponents did not put up with criticism and appealed to the court, stating that Yota Devices did not fulfill the terms of the contract and demanded to pay a penalty in the amount of 126 million.
By negotiation and compromise, the companies were able to settle their mutual claims temporarily, but the Singapore manufacturer’s next lawsuit put an end to Yota’s ambitions, which was finally declared bankrupt.