The auction of Daewoo Motors India’s assets, which was scheduled to be held in Mumbai today at the Indian Merchants Chamber, has been postponed for the time-being.
This has been done to take into account “the fresh inventory of the company’s current assets”.
Sources at Kadhe, Bapat, Kabhe, Sinha & Associates, the law firm which has been appointed as the auctioneers for assets, said a fresh advertisement inviting interested parties will be released in about four weeks.
A few auto companies, in addition to a large number of component manufacturers, were expected to take part in the auction, which includes the assembly and paint shop, engine and gear-box plants, press shop and a 40 mw captive power plant.
An auction of Daewoo’s assets is being carried out to repay the unpaid debts of the company’s Indian lenders, amounting to over Rs 1,100 crore. Daewoo’s plant has been built at the cost of over a billion dollars in foreign direct investment.
In fact, Daewoo is the only company to have invested over a billion dollars in India till date.
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