Prominvestbank’s jewelry is up for auction: how to buy it
24 May 06:19
The Deposit Guarantee Fund is putting up for sale the assets of PJSC Prominvestbank, which is in the process of liquidation. This was reported by the press service of the DGF, "Komersant Ukrainian" reports
The auction for the sale of jewelry belonging to Prominvestbank will be held on May 29 in the Prozorro.Sale system.
Lot No. G32N027558 is up for auction, which includes 1730 pieces of jewelry: 925 silver earrings and rings, some of which are decorated with gemstones.
The full list of items for sale can be found here.
The starting price of the lot is UAH 993,059. The auction will be held according to the English model – in three rounds with a price increase.
Both individuals and legal entities are allowed to participate. At the same time, residents of Russia and persons associated with this country are not allowed to bid.
Applications for participation in the auction will be accepted until 20:00 on May 28. The proceeds from the sale will be used to settle accounts with the bank’s creditors.
What is known about the auctions
The auctions are held in the Prozorro.Sale electronic system and are open to anyone except borrowers and guarantors of the loans put up for sale, as well as citizens and companies associated with the Russian Federation. The winner is determined on the basis of the highest bid.
We would like to add that the assets of insolvent banks are sold by the Deposit Guarantee Fund at auctions at prices that are significantly lower than their book value and even their appraised value
How the English auction works
The English auction is the most common auction format in the world, historically named so because it was widely used in the UK. Its essence lies in the fact that the price increases with each subsequent bid, and the bidder with the highest offer wins.
How does it work in Prozorro.Sale?
- Closed bid before the auction starts
- Participants submit closed price offers.
- They do not know how many competitors there are and what their bids are.
- The system automatically ranks offers from lowest to highest, but does not disclose their size. The bidder with the highest closed bid gets the right to make the last step in each round.
Three-round bidding
- The auction has three consecutive rounds; in each round, the participant has 3 minutes to raise their bid.
- The highest bidder wins.
- Thanks to the right of last resort, the bidder with the highest closed bid can react to the moves of the opponents and increase their offer to remain the leader.
The result of the auction
- At the end of the third round, the system determines the winner.
- The names of the bidders and their bids are disclosed only after the end of the auction.
What if there is only one bid?
If only one bid is submitted for an auction in Prozorro.Sale, this participant is automatically recognized as the winner. The sale price corresponds to their closed bid registered during the acceptance of bids, but not lower than the starting price.
