MTS Confirms Bankruptcy Order Given to Uzbek Subsidiary
Published on: 24th Apr 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Russia's MTS has confirmed the long expected announcement that its subsidiary in Uzbekistan has been declared bankrupt by a local court and that liquidation procedures have been initiated.
The network was closed down last September after an Uzbek court issued a ruling to confiscate all of MTS's local assets in favour of the Uzbek state, in connection with a judgment against four employees of the mobile network over a USD900 million tax dispute.
MTS's local company, Uzdunrobita had a 40 percent share of the country's 25 million-subscriber mobile-phone market before it was closed by the government.
MTS has already written off the value of its assets in the country to the value of USD1.1 billion.
In accordance with the terms of local legal procedures, Uzdunrobita's CEO has been relieved of his duties, and all powers regarding oversight and governance of Uzdunrobita now rest with the liquidation administrator. Mr. Utkir Bakhriev has been appointed as a liquidation administrator of Uzdubrobita.
MTS said that it reserves its rights to pursue all available legal options both in Uzbekistan and internationally in order to claim damages or seek any other available remedy in connection with what it says is the unlawful termination of Uzdunrobita's operations in Uzbekistan.