The Hindu : New bids to be invited for DMIL's assets

Online edition of India's National Newspaper
Thursday, Feb 13, 2003

Business

Business

New bids to be invited for DMIL's assets

MUMBAI FEB. 12 . The Debt Recovery Tribunal-appointed receiver has decided to invite fresh bids for assets of Daewoo Motor India Ltd (DMIL) after it rejected offers for DMIL's current assets such as Matiz cars as bid prices were "much below'' the reserve price.

Nine bids were received for current assets — finished cars and raw material — out of which three were for 312 Matiz cars. The bids were rejected due to low offer prices compared to the expected price, D. B. Khade of Khade Bapat and Associates who is receiver for the auction said.

"No bids were received for the entire property of the Surajpur plant near Delhi, except the current assets. The bids for items such as engine, aluminium die casting and plastic paint units were not opened on the request of DMIL's lender ICICI Bank Ltd. Hence the auction sale did not materialise,'' Mr. Khade said.

The bank made a request stating that it was procuring higher offer for the car company's assets, he said, adding further course of action would be decided through consultation with the lenders, bidders and financial institutions.

— PTI

Printer friendly page
Send this article to Friends by E-Mail

Business