Assets of Indian Spentex subsidiary auctioned in Uzbekistan
Uzbekistan, Tashkent, June 5 / Trend, D. Azizov /
The assets of FE Spentex Toshkent Toytepa LLC, the largest textile company in Central Asia, a wholly owned subsidiary of Indian Spentex Industries, has been put up for auction, according to the advertisements.
The decision to hold the trade was made by the meeting of creditors of FE Spentex Toshkent Toytepa LLC on May 28, 2013. Bidding is scheduled for June 18. Applications for participation in the auction will be accepted until July 17, 2013.
In case if the object not sold in the auction on June 18, a repeated auction will be held on June 25 and July 2.
The initial starting price of the property is 142.92 billion soums. The amount of the deposit for participation in the auction amounts to one percent of the initial price of all assets.
In May 2012 the Economic Court of the Tashkent region declared the bankruptcy of Spentex Toshkent Toytepa.
According to Uzbek estimates, the Indian company was unable to make payments on acquired assets in time, and could not bring Spentex Toshkent Toytepa to the planned production indicators. As a result, the agreement with the investor was canceled and bankruptcy proceedings were initiated.
As reported, in July 2006, Spentex Industries purchased the textile company "Tashkent Toytepa Textile" LLC from the National Bank for Foreign Economic Activity (NB FEA) of Uzbekistan for 81 million dollars. In accordance with the contract of sale the Indian company had to make payments on the amount of the transaction by the end of 2010.
In March 2010, the government of the republic approved a scheme for restructuring the remaining payments for the property complex of the Company, which mandated that from 2010-2016 Spentex Industries had to make additional investments in the amount of $ 27.8 million in the textile company in exchange for installments in specified period of remaining payments in the amount of 44.8 million for the acquired asset.
According to the terms of restructuring, beginning from 2010 the Indian company is committed to provide, the production of not less than 34.6 thousand tons of cotton yarn, 8.3 million meters of finished fabrics, as well as exports of manufactured products worth at least $ 78 million in year.
"Tashkent Toytepa textiles" LLC was established in July 2005, by the NB FEA and the State Joint Stock Company for Foreign Trade "Uzinterimpeks" on the basis of the Uzbek-Korean joint venture Kabool-Uzbek Co Ltd, which in its turn was also declared bankrupt and sold to repay the debt in the amount of $ 50 million. The initial cost of the joint venture assets Kabool-Uzbek Co Ltd. was to 222 million dollars.
Further, the NB FEA became the sole owner of the company.
The Spentex Toshkent Toytepa includes two cotton mills, one in Toitepa (Tashkent region) and another in Tashkent. The total installed capacity is 220,000 spindles and 236 air shuttleless looms.
The official exchange rate for June 4 is 2084.95 soum / $ 1.