Auction for Sale of Uzdunrobita’s Property Cancelled Tashkent, Uzbekistan

According to local the newspaper uzDaily, auction on sales of property of FE LLC Uzdunrobita, a subsidiary of MTS (Russia), was cancelled on 1 July 2013.

The auction was cancelled due to lack of applications. It is planned that new auction on sales of assets of Uzdunrobita will be held on 12 July 2013.

The assets of Uzdunrobita in complex with starting price of 600 billion soums (over US$288.241 million) will be realized at auction sales in line with the decision of the protocol of the session of the creditors committee of Uzdunrobita No. 2 from 31 May 2013.

Tashkent Economic Court recognized FE LLC Uzdunrobita, a 100% subsidiary of Russia’s MTS in Uzbekistan, as bankrupt on 22 April 2013.

Tashkent Economic Court satisfied application of court to announce mobile operator as bankrupt and opened liquidation process with term of one year.

Uzdunrobita has filed a petition to declare bankruptcy in the Tashkent Economic Court in January 2013.

The application was submitted after it cannot fulfill its obligations in line with the decisions of Tashkent city court from 17 September 2012 and Appeal Board of Tashkent court from 8 November 2012. In line with court decisions, Uzdunrobita should pay fines and penalties for about US$600 million.

On 11 March 2013, Economic court of Tashkent refused request of creditors of Uzdunrobitaon announcement of the company as bankrupt and launch of liquidation process.

In July the wholly-owned subsidiary of MTS, Uzdunrobita, had its license withdrawn initially for 10 days and then permanently due to repeated and systematic major violations, with the way their cellular network was designed and noncompliance with the instructions of the controlling body.

Several employees of Uzdunrobita were fined and sentenced for correctional works for schemes, created for receiving illegal income. Assets of the company were handed over to the government, but the court abolished decision and said the operator should pay US$600 million of fines and penalties in eight months.

MTS-Mobile-Tarif

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