Schmid held 42% of shares in the company he founded and built up from nothing during the 1990s to be worth Euro 13bn (£8.75bn) at its peak, grabbing 9% of the German market.
However the company fell into financial difficulties in recent times and had to be bailed out by the German government and France Telecom, which now owns 29% of the company.
Schmid was ousted from MobilCom after he disagreed with the way France Telecom were running the company, according to the Daily Telegraph.
His insolvency will not have any impact on MobilCom’s operations.
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