PHILIPSBURG, Sint Maarten — The Court of First Instance of St. Maarten has ordered the immediate lifting of conservatory attachments placed by Flow on the bank accounts of telecommunications provider Telem, ruling that the financial impact on Telem was too severe to justify maintaining the seizures while the dispute remains unresolved.
The decision, issued on June 24, 2026, means that Flow’s attachments on accounts held at The Windward Islands Bank, RBC Royal Bank, and Republic Bank (St. Maarten) must be removed immediately.
Dispute over alleged debt
The case stems from a long-running financial dispute between Flow and Telem over interconnection and infrastructure services provided through their telecommunications operations in Sint Maarten and Curaçao.
Flow claims that, following settlement discussions in 2023 and 2024, Telem still owes approximately NAf 1.24 million under a broader settlement arrangement. The company therefore obtained conservatory attachments on all of Telem’s bank accounts.
Telem disputed the claim and asked the court to lift the seizures, arguing that it was entitled to offset the alleged debt against later-issued credit notes from Flow, which it says significantly reduce or eliminate any outstanding balance.
Court: claim is plausible, but not proven
The court found that Flow had presented sufficient preliminary evidence to support its claim that Telem owes the amount. This is known in legal terms as a prima facie case, meaning the claim appears credible at first sight but has not yet been definitively proven.
However, the judge emphasized that this assessment is not a final ruling on the merits of the dispute. The underlying question—whether Telem actually owes the money or is entitled to set it off against counterclaims—must be decided in a full trial.
In its assessment, the court noted that although Telem never formally signed the final settlement agreement dated January 26, 2024, its conduct strongly indicated acceptance of its terms.
Telem made several payments in late 2023 and 2024 that referred to the settlement arrangement, and earlier correspondence also reflected acknowledgment of outstanding balances calculated under the same framework. On that basis, the court considered the existence of a binding settlement and the remaining debt to be sufficiently plausible for the purposes of the interim proceedings.
Credit notes remain disputed
A key point of contention concerns credit notes issued in November 2023, which Telem says created a substantial counterclaim against Flow. Telem argued that these credits should be set off against any outstanding amounts, effectively cancelling the alleged debt. Flow, however, maintained that the credit entries were accounting adjustments linked to settlement processing rather than genuine reductions of debt.
The court noted that the credit notes included unusually large adjustments without clear reference to the settlement agreement, and that Flow could not fully explain why they were issued before the final settlement was signed in January 2024.
Because both interpretations were possible, the court held that this issue must be resolved in a substantive trial.
Bank seizures deemed too severe
Despite finding Flow’s claim sufficiently plausible at this stage, the court ruled that maintaining the attachments was disproportionate. All bank accounts of the three Telem entities were frozen, leaving the companies able to operate only on funds deposited after the attachments were imposed.
The court concluded that this had effectively placed Telem in a financially constrained position, preventing normal business operations such as paying staff and suppliers. Given the seriousness of that impact, and the ongoing nature of the dispute since 2024, the court found that Telem’s interest in lifting the attachments outweighed Flow’s interest in maintaining them.
The court stressed that the lifting of the attachments does not end the dispute. Flow remains free to initiate a full civil case to pursue its claim, while Telem will be able to present its defence and set-off arguments in detail.
A hearing in the main proceedings has been provisionally scheduled for September 30, 2026.
Telem indicated that updated financial statements for 2023 through 2025 could be available within weeks, potentially forming the basis for renewed settlement discussions between the parties.
Flow was ordered to pay Telem’s legal costs, set at NAf 2,748.50, plus additional post-judgment costs and statutory interest if payment is delayed.
The ruling is immediately enforceable, meaning the bank attachments must be lifted without waiting for any further proceedings.
Why try to sell Telem piece by piece ?
Reliable information reaching our news desk indicates that last month, Telem Management made a private presentation to the Council Of Ministers (COM) of Sint Maarten in which it suggested selling Sint Maarten’s only telephone company, Telem, to Flow, a privately owned company. The COM rejected the proposal.
It is also notable that Telem Management recently received approval to sell the old cable TV building that at that time was owned by Telem to a private entity. It appears that Telem’s management is attempting to sell off the company piece by piece.
