Sale of KS Oils' edible oil biz assets fails

K S Oils today said the auction process for sale of its edible oil business assets, initiated by SBI and other lenders of the company under SARFESI Act, failed due to unsatisfactory response by the bidders.
However, the sale process of wind power generators was successfully concluded, KS Oils said in a filing to the BSE.
"The sale of the whole or part of the edible oil assets, comprising of various branded products and manufacturing plants located at Morena, Ratlam and Guna in Madhya Pradesh, Kota in Rajasthan and a port based refinery in Haldia, West Bengal...Pursuant to a bid sale process initiated by SBI and other lenders of the company... Was not succeeded due to unsatisfactory response to the bid process," the company said.

The sale process was initiated by the lenders under the Secularisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFESI).
"The lenders have now decided to conduct a second round of bidding process through public auction and the same will be held on February 24, 2015. The public notice of the second round auction sale of the edible oil business assets.
However, the company informed that the sale of the whole or part of the wind turbine generators, associated facilities and the related land parcels (freehold and leasehold), located in Tamil Nadu, Rajasthan and Madhya Pradesh pursuant to a bid sale process initiated by SBI and other lenders has been successfully concluded.

Due to financial problem faced by the company and huge debt, the board had in July 2013 authorised SBI to conduct the process for sale of edible oil and wind energy assets of the company.