ICICI Bank has put Kolkata-based Woolworth India on the block. The next on the line is the Ahmedabad-based Core Healthcare.
The bank has invited bids for Woolworth India, controlled by the Lohias. The units of the company, located across the country, have a capacity of 42,528 spindles for manufacturing worsted woolen yarn and of 7,200 spindles for manufacturing silk yarn. Prospective bidders have to put in their bids by December 12.
This is the first instance of the banks and institutions trying to sell assets under Section 13(2) of the Securities and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance (now Bill), 2002.
Core Healthcare, controlled by the Ahmedabad-based Handas, was referred to the Board for Industrial and Financial Reconstruction (BIFR) in 2001. ICICI Bank leads the consortium of lenders to the company.
The rules for selling assets stipulate that after taking possession, the lenders can dispose of them by obtaining quotations from parties dealing in the secured assets, by inviting tenders from the public, by holding a public auction, or by private treaty. The lenders also need to serve the borrowers a 30-day notice before selling movable secured assets.
