Auction of an Airbus put on hold due to no buyers

The Legal Execution Department has put on hold the public auction of an Airbus plane scheduled on December 20 after five unsuccessful auctions which failed to attract a buyer.

The 5 th auction which was staged today (Wednesday) at Don Meuang airport attracted a small number of interested individuals, including a handful of prospectus bidders and representatives of creditors. Mr Sarun Panyadilok, director of the Civil Litigation Office of Bangkok was on hand to supervise the auction.

The bidding price started at 21 million baht, representing 70 percent of the original bidding price. Even so, no bid was offered by any of the prospectus bidders present, prompting the Legal Execution Department to scrap the 6th bid scheduled on December 20.

The department chief, Ms Ruenvadee Suwanmongkol, said that, for the next step,the department would call a meeting of creditors for a discussion whether the starting bidding price should be reduced or not in order to attract bidders or whether the auction should be scrapped completely.

She said that if the creditors agreed to lower the price, then the matter would be referred to the Legal Execution Department and a committee will decide on the starting bidding price.

Ms Ruenvadee explained that, if the creditors gave a go-ahead for a renewed auction, the new law on public auction will be applied under which there will be four auctions. If the first auction fails to attract a buyer, the starting price will be lowered 10 percent for the second and third auctions and 30 percent discount for the fourth auction.

Interested bidders are required to place 2.5 million baht as a guarantee which will be refunded if the bidders pulled out. The successful will be required to pay the outstanding rental space for the plane at Don Meuang which has now run to about five million baht plus additional expenses until the plane is move out from the parking lot at the airport.

 

The Airbus A-310- 222 belong to PC Air, a chartered airliner which went belly up nd its plane seized to be auctioned off to repay the creditors.