WILL ELECTRONIC AUCTION FAIL?

The electronic auction of Bjni mineral water plant owned by the Sukiasian family ends on February 16. So far the auction has be cancelled because of the lack of buyers. If they find no buyer, the company will again be put up for auction. But this time the starting price for the plant will go down by 10 percent. The Armenian Justice Ministry’s Service for the Mandatory Execution of Judicial Acts (SMEJA) doesn’t exclude that a buyer may turn up at the last moment.

To remind, Bjni was first put up for auction on January 23, 2009. The company’s assets and premises in the central town of Charentsavan and in the village of Bjni were priced 6 milliard 580 million drams (over 21.50 million dollars). The starting price was 4 milliard 935 million drams. The auction was postponed as no one seemed willing to buy the company. Another auction was announced in ten days’ time. This time the price for the plant went down by 10 percent.

Bjni’s Director General Laert Harutyunyan has applied the SMEJA head Mihran Poghosyan to dismiss the case of “Bjni” as, according to the General Manager, the reserve price to be presented at the auction will be lower than the amount demanded. The price for the double auction is fixed 4 441 358 drams, which is 492 485 264 drams less than the reserve price set for the failed auction. At the time, the reserve price was 4 934 843 264 drams.