Uzbekistan, Tashkent, 3 May / Trend D.Azizov /
A bankruptcy case and monitoring procedure have begun in respect of the regional branches of Uzdunrobita Ltd., a wholly owned subsidiary of Mobile TeleSystems (MTS) which provided mobile services under the MTS-Uzbekistan brand, Uzbek media reported.
According to reports, bankruptcy proceedings were initiated on the basis of the determinations of the Commercial Court of the Autonomous Republic of Karakalpakstan, and 12 provincial commercial courts.
Official receivers were assigned to the branches according to court decisions. Creditors meetings will be held on June 3, for the consideration of a bankruptcy cases in the courts against the branches of Uzdunrobita for June 10.
During the meetings, the creditors will consider the official receiver's reports, creditors' registers and declarations on applications to a commercial court on the application of bankruptcy proceedings against the debtor.
Uzdunrobita, the largest Uzbek mobile operator has been under inspection since last June. In July, MTS disconnected the network throughout Uzbekistan at the request of the State Communication Inspector.
In August 2012, the Tashkent Economic Court upheld an application of the Uzbek Agency for Communication and Information (UzACI) to revoke all licenses of the company.
The regulator accused the company of operating its subsidiaries without obtaining separate licenses.
According to UzACI's calculations, non-payment of fees for licenses has caused damage to the state to the sum of 419 billion soum, whereas subsidiaries themselves illegally earned up to 306 billion soum by selling services.
On September 17, the Tashkent City Criminal Court passed sentences on cases of four Uzdunrobita managers, sentencing them to fines and different terms of correctional works and deciding to transfer the entire property Uzdunrobita to the state.
In early November, the Board of Appeals for Criminal Cases of Tashkent City Court partially satisfied the complaint of Uzdunrobita, cancelling the decision on transferring its property to the state.
The board has determined the amount of financial claims to Uzdunrobita to be $600 million with the possibility of payment by instalments over an eight month period.
Moreover, the board recognised Uzdunrobita as the civil respondent in the criminal case against four of its employees and cancelled the property arrest imposed by the first court.
The first verdict against the company's managers remains in force.
The total amount of claims made by the Prosecutor General's Office, antimonopoly bodies, Agency for Communication and Information and tax bodies against the company exceeds $1 billion. This is the amount of MTS's investments made in the development of business in Uzbekistan.