Authorities in Uzbekistan have failed to find a buyer for the assets it seized from Russian operator group MTS and are now offering them to creditors of the business.

If creditors fail to take up the offer, the liquidation administrator may transfer the assets to local authorities. No applications were made to bid for Uzdunrobita’s assets in two separate auctions.

Uzdunrobita — which had 9.5 million customers —  had its licence suspended in July 2012 ostensibly for non-payment of taxes and licence violations, with a court ruling allowing the Uzbek state to seize control of the operator.

An appeals court reversed the decision that allowed the state to take control of operations in November but determined that Uzdunrobita should pay fines and penalties of around $600 million.

However, the operator was unable to fulfil the obligations imposed by the court, meaning it had to file for bankruptcy with the Tashkent Commercial Court in January. The court declared Uzdunrobita bankrupt in April, initiating liquidation procedures.

Following the failure of the sale, MTS reaffirmed its view that the seizing of Uzdunrobita’s assets “have no legal or factual basis” and said it reserves the right to pursue legal options in Uzbekistan and internationally “to defend its legal rights and protect its investments”.

MTS has a claim pending against Uzbekistan in the World Bank’s International Center for Settlement of Investment Disputes. It said it plans to fully recover damages or obtain other relief from any organisation involved in depriving it of its business and assets in the central Asian country.