The Debt Recovery Tribunal appointed as receiver, has decided to invite fresh bids for sale of assets of Daewoo Motor India Ltd (DMIL) after it rejected offers for DMIL’s current assets like Matiz cars as bid prices were ‘much below’ than the reserve price.A total 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 the very low offer prices compared to expected price, said D.B. Khade of Khade Bapat and Associates and receiver for the auction. “No bids were received for the entire property of the Surajpur plant near Delhi, except the current assets. Bids for items like 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,” he added.The bank made a request stating that it was procuring higher offer for the car company’s assets, he said, and future course of action would be decided through consultation with lenders, bidders and FIs. The term lenders including IDBI and Exim Bank with total exposure of Rs 1,000 crore sought postponement of the proceedings as many parties have evinced interest to participate in bidding process while banks including Canara Bank insisted on opening of bids filed with receivers. FIs have an exposure worth Rs 1,000 crore while banks, which have extended working capital have an exposure of Rs 80 crore.Three bids filled for Matiz cars were from Triumph Motors, (final bid of Rs 1.32 lakh per unit), Deepak Motors (Rs 1.12 lakh per unit) and Dynamic Motors (Rs 1.07 lakh), which withdrew from bidding process once bids were opened.Khade, first rejected all three bids but later asked the bidders wanted to raise offer price. Also the bid price has been raised from Rs 1.17 to Rs 1.32 lakh.Telco filed a bid for the gear line while Sundaram Clyton bid for aluminium die casting. Both bids were not opened following a request from ICICI Bank Ltd. The decision to invite fresh bids was the second time that the bidding process could not be completed and adjourned again. Earlier, in December it was rescheduled due to technical reasons.
