The bank struggled to sell the debt, the debt collection bank was hopeless and desperate and dragged each other to court

Banks struggled to sell trillions of debt of mineral giants

From the starting price of VND 2,404 billion for the debt auction of Ngoc Linh Co., Ltd., after 10 times of listing but no buyers, BIDV had to lower the price to less than half, 1.15 thousand billions dong.

Just put up for auction the debt of Ngoc Linh Co., Ltd (Ngoc Linh Company), this is the 11th time BIDV South Hanoi Branch has announced the auction of this debt since the first time in December 2020.

Total outstanding loans as of April 30, 2022 are VND 2,198 billion and USD 20,036 million. In there. principal balance is 1,110 trillion VND and 11,888 million USD. Outstanding balance of interest and penalty fees is 1,088 billion VND and 8.148 million USD.

The collateral for the loan includes: Bac Kan lead-zinc electrolysis plant in Ban Cuon 2 village, Ngoc Phai commune, Cho Don district, Bac Kan province. The factory is located on an area of ​​​​64,388 hectares, the expiry date is September 26, 2057; car Lexus LS 460 produced in 2007; the right to use 14,500 m2 of land in Lac Hong commune, Van Lam district, Hung Yen province; Land use rights and assets attached to land of Mr. Vu Duc Tuan (Director of the company) and his wife, Ms. Tran Thi Vui, are located at 381 Giai Phong street, Thanh Xuan district, Hanoi city.

Many equipment and lines at Bac Kan lead-zinc electrolysis plant of Ngoc Linh Co., Ltd. have been exposed to rain and sun for nearly 10 years.

In this 11th auction announcement, BIDV wishes to sell the “debt unit” for VND 1,154 billion. This price has reduced to 1,250 billion VND compared to the starting price of 2,404 billion VND issued by the bank in the first auction, December 2020.

Ngoc Linh Company is the investor of Bac Kan Lead and Zinc Electrolysis Factory, with a capacity of 30,000 tons/year. The project was granted an investment certificate by the People’s Committee of Bac Kan province in 2007 with a total investment of VND 789 billion, then increased to VND 2,170 billion. However, due to the lack of thoroughness in the selection and appraisal of projects, poor capacity of enterprises, and outdated processing technology, most factories are now building mats, causing resource losses of hundreds of billions of dong. Up to now, this factory has never been officially operated.

A corner of Bac Kan Lead and Zinc Electrolysis Factory of Ngoc Linh Co., Ltd.

Vietcombank with bad debt from Viet Truong Son

Vietcombank in Ho Chi Minh City has just put up for sale a debt worth VND 33.398 billion (principal debt VND 12,064 billion, interest debt of VND 21,333 billion) of Viet Truong Son Co., Ltd (Viet Truong Son Company).

Notably, this is the 15th time Vietcombank has offered to sell this bad debt. At the 15th auction announcement, Vietcombank offered a starting price of VND 20.6 billion, down more than VND 18 billion, down nearly half compared to the first time in April 2020.

Viet Truong Son Company is headquartered at 18 Extended D2 Street, Ward 25, Binh Thanh District, Ho Chi Minh City, represented by Mr. Vo Van Cang. The main business of the company is trading in machinery, equipment and spare parts. However, the company has since ceased operations.

Viet Truong Son’s debt at Vietcombank comes from credit contracts signed in 2009 and 2011. In 2019, the People’s Court of Binh Thanh District, Ho Chi Minh City once handled a credit contract dispute between the plaintiff Vietcombank. and the defendant is Viet Truong Son Company.

It is known that the collateral for these credit contracts includes 6 land use rights in Da Lat city, Lam Dong province.

Take each other to court, bear the cost of the court fee

Among banks actively selling bad debts, OceanBank is the bank with the most persistent bad debts, formed before the criminal prosecution of President Ha Van Tham (November 2014). . Prominent among them is the debt of Pegasus Thang Long Company Limited (Pegasus Thang Long Company).

Unlike usual, the starting price for bad debt auctions will decrease gradually (no more than 10%) according to the auction times, but OceanBank gradually increases the starting price because this bank charges additional interest. . With the original debt of 175 billion VND of Pegasus Thang Long Company, including the interest incurred, this bad debt was once for sale with a starting price of 373 billion VND in the first sale, in December 2020.

However, in the recent 10th sale, this bad debt was sold by the bank for up to 452 billion VND.

Pegasus Thang Long (formerly known as Dai Duong Xanh Investment and Service Company Limited) is an enterprise founded in 2013 by former OceanBank Chairman Ha Van Tham under the name of a subsidiary of Hotel and Service Joint Stock Company. Oceania (OCH). In May 2014, OCH sold 100% of its ownership in this company to an individual, Mr. Le Manh Linh, to collect 30 billion VND. Although selling this business for a mere 30 billion dong, OceanBank soon generously lent Pegasus Thang Long hundreds of billion dong with the collateral being just property rights arising from the right to transfer contract. and the obligation to contribute capital in the project “Investment in infrastructure construction and business and post-investment management of Binh Phu Industrial Complex” between Dai Duong Xanh Investment and Service Company Limited and Mika Company Limited.

Powerless in debt collection, OceanBank sued Pegasus Thang Long to the People’s Court of Ba Dinh district, Hanoi in 2017. Not only could not collect the debt, OceanBank also had to advance the first-instance court fee with the amount of 512.7 million dong. . Currently, the Hanoi People’s Court is still in the process of accepting the case according to the appellate order.

Not only with the bad debt of Pegasus Thang Long, the list of bad debtors at OceanBank also includes such names as: Nhat Minh Production JSC, Saigon Oil and Gas Construction and Investment JSC, and Trading Investment Company Limited. Tung Lam Import-Export, Hanoi Hi-Tech Agriculture Investment Joint Stock Company, Entertainment Development Joint Stock Company of the Land of Happiness, etc.

The debts of the above businesses were all sold in vain by OceanBank over 10 times. The total value of these debts is up to trillions of dong. These credit contracts were signed under Mr. Ha Van Tham.

Ngan Giang