ANKARA, Turkey-The sale of Turkey's state-owned tire maker Petlas Lastik Fabrikasi has fallen through, after the company bidding to take over Petlas failed to meet payment deadlines.
The privatization agency has reopened bidding for the car, truck and aircraft tire maker. It expects to announce another buyer in May or June, a spokesman said.
Prior to agreeing earlier this year to sell Petlas to a company headed by an Iranian businessman, the agency had received bids from at least two other parties.
Nadir Impeks Ltd., the winning bidder in February, reportedly was unable to secure a letter of credit for $60 million to guarantee its bid, said diplomatic sources in Turkey.
Nadir Impeks reportedly had negotiated supply contracts with customers in several Islamic countries in the Middle East and North Africa as part of its guarantee to export 75 percent of the plant's annual output.
Petlas was established by the government in 1974 to provide Turkey with a guaranteed supply of military tires, but has struggled since being commissioned in 1990.
Last year Petlas operated at about one-third of capacity and losses deepened by more than 60 percent to $11.2 million. Nameplate capacity is 1.95 million units.