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Ocean Group wants to remove trillions of debt from financial statements

Ocean Group (Ocean Group) is consulting shareholders to remove bad debts of VND2,553 billion from its 2021 financial statements to monitor the off-balance sheet.

In the list of bad debts, there are some items with more than 400 billion dong, the rest are common from a few hundred million dong to less than 10 billion dong.

These debts have all been made provision, so the adjustment will reduce the “provision for short-term and long-term bad debts”. However, Ocean Group’s management affirmed that this does not affect the debt recovery process and the company’s interests.

Explaining the proposal for off-balance sheet monitoring, Ocean Group’s management said that these debts arose in 2014 and were related to the old management period, complicated legality, no collateral and difficult to collect. return.

Before the 2014 period, Ocean Group was a large multi-industry corporation, the stock was considered a blue chip in the market and associated with Mr. Ha Van Tham. The company’s charter capital increased from 10 billion dong in 2007 to 3,000 billion dong four years later. Total assets in a year reached over 11,000 billion dong, profit was approximately 1,000 billion dong.

After Mr. Tham got caught in a labor round, the company fell into difficulties when it had five losses of more than 2,500 billion VND. Controversy over shareholder rights of Ha Bao Private Enterprise (the company related to Mr. Tham), conflicts in the management board and a series of issues related to business activities have made this business still for many years. engulfed in crisis.

Before announcing the bad debt settlement plan, the company wrote off a number of debts for individuals who were executing judgments and found partners to sell debts but it was not effective. Typically, at the end of May 2022, the company announced to auction 7 bad debts with a discount of only about 10% of the principal balance (VND 1,072 billion) but no interested partners.

Due to the review, audit of data and implementation of procedures to sell these debts, Ocean Group has not yet prepared and issued audited financial statements for 2021. This has resulted in the company’s shares being lost. The Ho Chi Minh City Stock Exchange changed from a controlled to a restricted area. Accordingly, from June 9, this stock can only be traded in the afternoon by order matching and put through methods.

The company’s management believes that removing bad debts from the financial statements for separate monitoring is a necessary move, as a basis for preparing and issuing audited financial statements in accordance with regulations. From there, the company will overcome the situation of restricted shares.


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