Turkish state fund puts seized motor company BMC up for sale
A Turkish state fund announced it has put motor company BMC up for sale, eight months after seizing the firm from indebted Turkish holding Cukurova hurriyet daily news reported.
The Turkish Saving Deposit Insurance Fund (TMSF) has set an estimated price of 985 million Turkish Liras ($434 million) for the firm that will be sold through a closed envelope auction, according to a notice released on Official Gazette Feb. 4.
The TMSF had confiscated the heavy and armored vehicle maker BMC on May 17, along with the other 11 companies belonging to the troubled conglomerate Cukurova Holding, citing the group's debts that were announced to be $455 million then.
In September, some had claimed the İzmir-based firm was planned to be sold to Turkey's Calık Group to manufacture a local car, encouraged by the government. But Calık had refuted the claims, asserting the firm does not have any plans of entering the automotive sector.
BMC, maker of Turkey's Kirpi brand armored carriers, was supposed to deliver 468 Kirpis and trucks in a range of sizes to the Turkish Defense Ministry by the end of 2012. However, the company, which has been troubled with financial constraints since last May, has only delivered 295 of the order so far.