FLC publicizes 51 Resolutions, revealing that OCB is the owner of FLC tower “golden land” Cau Giay from 2020

FLC Group recently sent to the State Securities Commission and the Ho Chi Minh City Stock Exchange 326 pages of documents containing information that needs to be corrected and additionally disclosed under the sanctioning decision dated March 24.

FLC publishes additional information about transactions with related parties

The document includes: Announcement of FLC’s adjusted management report for 2020 and 2021 to supplement information on transactions between company insiders, related people of insiders and subsidiaries, companies. company controlled by FLC… at the same time, FLC also corrected the figures in the 2021 semi-annual financial statements to adjust the revenue and gross profit figures.

FLC also announced additional 51 resolutions of the Board of Directors (BOD) on transactions between FLC and related parties. The resolutions published from May 2017 to April 2020 were all signed by Mr. Trinh Van Quyet during his time as Chairman of the Board of Directors of both FLC Group and Bamboo Airways.

It is worth mentioning that this is the type of information that must be announced within 24 hours according to the provisions of Circular 96/2020, but until now, FLC Group has only announced it.

The content of the BOD resolutions was mainly about FLC’s guarantee and guarantee for the financial obligations of related enterprises such as Tre Viet Aviation Joint Stock Company (Bamboo Airways – Code: BAV), Construction Joint Stock Company FLC Faros (Code: ROS), FLCHomes Real Estate Development Business Investment Joint Stock Company (Code: FHH), FLC Stone Investment and Mineral Joint Stock Company (Code: AMD), ….

Banks that lend include Orient Commercial Joint Stock Bank (Code: OCB), VietinBank (Code: CTG), BIDV (Code: BID), Vietcombank (Code: VCB), Military Commercial Joint Stock Bank (Code: MBB), Industrial and Commercial Bank of China (ICBC),…

Collateral assets include ROS shares at FLC Faros, BAV shares at Bamboo Airways, real estate in Thanh Hoa, Binh Dinh, Gia Lai, Quang Ninh provinces…

Tower FLC 265 Cau Giay has “silently” been assigned debt to OCB since 2020

One of the notable resolutions among more than 50 resolutions published by FLC in this document is related to the debt assignment of Bamboo Airways Tower (FLC Twin Towers) 265 Cau Giay, Hanoi.

Specifically, in Resolution No. 61B signed and promulgated by Mr. Trinh Van Quyet on November 9, 2020, the Board of Directors of FLC approved the use of assets under the legal ownership of FLC Group and Business Investment JSC. Real Estate Development FLCHomes to assign debt to replace the debt repayment obligations of FLC Group, FLCHomes, FLC Faros Construction JSC (ROS), FLC Stone Investment and Mineral JSC (AMD) and Tre Viet Aviation JSC ( Bamboo Airways) at Orient Commercial Joint Stock Bank (OCB).

The specific debt-debt property is the land use right of FLCHomes at the address of the land plot number 265 Cau Giay street, Dich Vong ward, Cau Giay district, Hanoi according to the Certificate of land use right, house and property ownership rights. other property attached to land; Assets attached to land are under the legal ownership of FLC Group.

FLC said, the purpose of using the property to offset all debt repayment obligations including the entire outstanding balance of principal, interest and overdue interest (if any) of FLC; FLC Faros, FLCHomes and Bamboo Airways arise from all credit contracts and or guarantee contracts, credit documents signed between these companies and OCB up to the time of signing the transfer contract.

In addition, after assigning a debt to the headquarters building, the Board of Directors of FLC Group decided to sublease part of the area of ​​this building to serve the business activities of FLC and the third parties appointed by FLC. The lessor is OCB.

It is known that the building 265 Cau Giay has become the headquarters of FLC Group since July 2019. Previously, in January 2019, then-President of FLC Group, Mr. Trinh Van Quyet, shook hands with OCB Chairman Trinh Van Tuan, committing to establish a comprehensive cooperation relationship to increase benefits. economy through prioritizing the use of diversified products and services between FLC and OCB.

Specifically, OCB will provide financial solutions for medium and long-term credit services, working capital and capital financing to support the Group’s production, business, investment and project development activities. FLC as well as its member units.

At the same time, OCB also provides credit service packages for customers to buy real estate in projects invested by FLC.

For its part, FLC Group prioritizes using OCB’s account services, card services, e-banking services, deposit services, foreign currency transactions, etc. In addition, FLC creates favorable conditions for OCB to access financial financing and participate in investing in FLC’s projects.

After the cooperation agreement was signed, FLC’s outstanding loans at OCB increased rapidly.

At the end of 2019, the total loan balance (short-term + long-term at OCB and OCB bonds) of FLC (consolidated) was VND 1,145 billion, increasing to VND 1,703 billion by 2020.

According to FLC’s consolidated financial statements for the first quarter of 2022, as of March 31 of this year, OCB is still one of FLC’s largest creditors.

Accordingly, FLC’s short-term loan balance at OCB is VND 713 billion, in addition, there are two lots of long-term bonds issued to OCB Thang Long Branch and OCB Hanoi Branch with a value of VND 396 billion and VND 396 billion, respectively. 423 billion dong.

Previously, at the 2022 Annual General Meeting of Shareholders of Orient Bank (OCB) held on April 23, OCB General Director Nguyen Dinh Tung said that FLC is a good customer who always ensures timely repayment. However, when former FLC Chairman Trinh Van Quyet was arrested and detained, the bank determined that this was a big risk event not only for FLC but also for FLC’s partners and was negotiating debt collection first. term 1,500 billion.