Duc Long Gia Lai shares were sold off after information about bankruptcy proceedings being opened.

10/13/2023 15:24 Nhat Linh Print article

ANTD.VN - After the news that the Gia Lai Provincial People's Court opened bankruptcy proceedings, shares of Duc Long Gia Lai Group Joint Stock Company (stock code: DLG) were sold off and hit the floor.

On October 12, the People's Court of Gia Lai province issued a decision to open bankruptcy proceedings against Duc Long Gia Lai Group Joint Stock Company (stock code: DLG), after considering the request of Lilama 45.3 Joint Stock Company (Quang Ngai province).

Previously, at the end of July 2023, Lilama 45.3 Joint Stock Company submitted a petition to Gia Lai People's Court requesting to open bankruptcy proceedings against Duc Long Gia Lai Group Joint Stock Company because it could not collect a debt of 20 billion.

Immediately after this information, in the trading session on October 13, investors immediately fled the company’s shares. Accordingly, LDG shares were placed on the floor price right at the opening minutes.

By the end of the session, nearly 2.8 million DLG shares were matched at the floor price, but there were still more than 9.2 million shares left to sell at this price.

Cổ phiếu Đức Long Gia Lai bị nhà đầu tư bán tháo ảnh 1

Duc Long Gia Lai shares were sold off by investors

Regarding the developments of the incident, Duc Long Gia Lai also explained that the company encountered temporary financial difficulties due to being severely affected by the Covid-19 pandemic from 2020-2023, the global economic crisis, and increased inflation due to the prolonged Russia-Ukraine conflict that has not yet ended.

The company also confirmed that it is not insolvent and has total assets of nearly 6,000 billion VND. Its financial resources are sufficient to repay its partners, customers, and banks from its production and business activities as well as receivables from its partners.

Also according to DLG, Lilama's debt is very small, accounting for less than 0.3% of the company's total assets (about 20 billion VND), completely within the company's ability to pay, so the company is not subject to the Bankruptcy Law.

The company has shown goodwill, worked with Lilama 45.3, proposed a debt repayment schedule, and is ready to repay the debt after both parties agree on the payment schedule, but Lilama 45.3 has not agreed.

Regarding the general market, the stock market continued to be quiet today. The VN-Index and HNX-Index, after trading below reference for most of the time, were pulled up in the last minutes of the session.

At the end of the session, VN-Index increased slightly by 3.12 points (0.27%) to 1,154.73 points; HNX-Index increased by 0.61 points (0.26%) to 239.05 points.

Meanwhile, UPCoM-Index decreased slightly by 0.18 points (-0.20%) to 87.90 points.

Liquidity continued to be low with about 16.5 trillion VND traded on all three exchanges. Foreign investors net sold nearly 300 billion VND in the market.

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