Owner of Kenton super project in Phuoc Kien has debt seized: 2,800 billion VND loan has 'dizzying' interest rate

Two banks lent the investor of the Kenton Node super project about 2,800 billion VND. Becoming bad debt, the value of the loan's interest and penalty interest alone has reached 4,000 billion VND, not including the principal.

Late payment of principal, loans will incur high interest and late payment penalties - Photo: QUANG DINH

Minh Phap Auction Company recently announced the 8th auction of the debt of Tai Nguyen Construction Production and Trade Company Limited (Tai Nguyen Company) at BIDV.

According to information from the auctioneer, the total outstanding debt of Tai Nguyen Company at BIDV as of July 26, 2024 is more than 5,720 billion VND, of which the principal outstanding debt is 2,506 billion VND, and the interest outstanding debt is 3,214 billion VND.

The interest will continue to be calculated after July 27, 2024 until the customer has fully paid off the loan principal at BIDV.

Previously, Tai Nguyen Company signed 8 credit contracts with BIDV. Of which, the credit contract in 2005 was worth nearly 40 billion VND, the loan in 2013 was worth nearly 1,500 billion VND and the last loan in 2020 was worth nearly 67 billion VND.

The collateral for the above debt of Tai Nguyen Company is the land use rights and assets attached to the land formed in the future of the Phuoc Nguyen Hung residential area project (now the Kenton project), Phuoc Kien commune, Nha Be district, Ho Chi Minh City.

There are also property rights to exploit stone quarries in Hoa Thach and Phu Man communes, Quoc Oai district, Hanoi.

After 7 unsuccessful sales, this time, the debt was reduced to 4,419 billion VND.

Besides BIDV, another bank has also spent many years handling collateral to recover debt from Tai Nguyen Company.

Specifically, Vietnam Maritime Commercial Joint Stock Bank (MSB) recently announced on the media the sale of the debt of Tai Nguyen Construction Production and Trade Company Limited with a total provisional outstanding debt as of November 6, 2024 of VND 1,141,407 billion. Of which, the principal debt is more than VND 296 billion, the remaining part accounts for nearly 3 times the interest debt and penalty interest (more than VND 845 billion).

Kenton super project has been "shelved" for many years due to debt collection

According to research, Tai Nguyen Company was established in 1996, located on Nguyen Hue Street, District 1, Ho Chi Minh City. The legal representative is Mr. Vu Anh Tam - Chairman of the Board of Directors.

The Kenton Node project, invested by Tai Nguyen Company, was started and opened for sale in 2009. After that, the investor encountered capital problems and the project was "shelved" for many years.

By 2017, after stopping for more than 7 years, the project was renamed Kenton Node, announced to have a total capital of more than 1 billion USD with many construction items such as apartments, hotels, service centers, theaters, schools, international clinics...

At the same time, Kenton Node received additional capital from BIDV and MSB, but after two restarts, the project has not been able to revive. The bank has announced the auction of the project to collect debt.

Source: https://tuoitre.vn/chu-sieu-du-an-kento-o-phuoc-kien-bi-xiet-no-khoan-vay-2-800-ti-bi-lai-chong-chong-mat-20241119111133464.htm