Montenegro launched on Friday, Dec 6, the tender for the sale of aluminium firm KAP’s assets – a move anticipated ever since the company entered into insolvency in July.

The bankruptcy administration of the company said in a tender invitation the estimated value of the assets offered for sale is EUR 52.5mn, adding this is not the minimum required price in the tender, neither shall be binding or defining for the bidders.

Interested investors should pay a EUR 1mn deposit. The bidding deadline expires on January 8, 2014, while the offers will be opened on January 10.

The bankruptcy manager will take a decision on the successful bidder and announce the buyer eight days later. The buyer is obliged to sign the sales contract up to 15 days after they are announced a buyer.

If only one bidder participated in the tender, the manager is authorised to select them, or not, for buyer. If more bids are received, the priority will be given to those offering to take over the complete assets put up for sale.

The assets offered for sale are divided into ten groups. Potential buyers could bid to acquire all of them, or just for separate elements of the offer. The key assets on sale include KAP’s main production units – the alumina refinery and its adjacent infrastructure, the red mud pool, the anode manufacturing plant, the smelter facilities, along with other administrative buildings, land plots and movable assets.

KAP was declared bankrupt on Oct 9, which cleared the way for its debt-free sale. Investors from India, Germany, Poland, Turkey and Croatia have already indicated interest in taking over debt-free KAP. Even if the sale is successful, however, most of KAP’s creditors will likely remain empty handed considering the total value of their claims ranges between EUR 360-460mn.

The largest creditors are the Montenegrin government with claims worth EUR 148.1mn, followed by KAP’s former owner Russia’s CEAC with some EUR 50mn, energy firm EPCG with EUR 44.9mn, En+ Group (the owner of CEAC) with EUR 43.4mn and Russia’s VTB Bank with EUR 25.8mn.