Please said and sold at a loss

Sapphire AVM, owned by former AKP MP Vahit Kiler, was purchased by Halkbank for $100 million at the end of 2019 in exchange for a portion of its debt. It was resold to Kiler Holding at half the price at the beginning of 2023. The Court of Accounts valued the AVM at $78.9 million. This situation was recalled and attention was drawn to the fact that the AVM was sold for $48 million, causing public loss in the Turkish Grand National Assembly.
BELOW EXPERTISE VALUE
Halkbank General Manager Osman Arslan said that they bought the shopping mall in return for their debt, but had to sell it off when they suffered losses during the pandemic. Arslan said, “We put it out to tender when it became a burden for us. Nobody wanted to buy it. We offered it to the company and said, ‘Please buy it’ and sold it back.” Halkbank accounts were discussed in the Parliamentary SEE Commission. CHP Çorum Deputy Mehmet Tahtasız said, “Sapphire shopping mall went on sale in September 2022 and was sold in January 2023. Halkbank sold the shopping mall, which it bought in return for its debt, to the same company, Kiler Holding, for almost half the price, for $48 million. However, the appraisal value is $78.9 million.”
Halkbank General Manager tried to defend this sale as follows: “This company also had receivables from other banks. When we subjected our receivables to asset-debt swap, we evaluated and allocated them at a figure below the appraisal values of that day. Halkbank’s ownership rate in real estate increased over time. We had made similar real estate purchases with Ziraat Bank. The viewing terrace on the shopping mall and also the residences were purchased. The residences are also included in the mentioned amount. Over time, the residences were sold and deducted from our receivables.”
Claim: 'It's not against the law'Halkbank General Manager Osman Arslan stated the following: “When the shopping mall suffered losses, we made an offer to the company. We cannot operate it, we suffer losses. We said, ‘If you are in a good position, if the conditions are suitable, please take this.’ With the approval of our board of directors, the collection was made for a figure that would cover our credit receivables plus interest and above that. Some of it was paid in advance, and the part that was tied to a term was not interest-free. If the shopping mall had remained with us, the losses it would have incurred, plus the result of us not being able to access cash, would have been much greater. We do not think this is against the law.”
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