Lilama 45.3 again requests to open bankruptcy proceedings against Duc Long Gia Lai

Lilama 45.3 again requests to open bankruptcy proceedings against Duc Long Gia Lai

Lilama 45.3 Company continues to file a petition to open bankruptcy proceedings against Duc Long Gia Lai. The petition has been accepted by the Gia Lai Provincial People's Court.

Duc Long Gia Lai Group Joint Stock Company (HoSE: DLG) said it has just received Notice No. 01/PS-TBTA dated July 12 of the Gia Lai Provincial People's Court regarding the acceptance of the petition to open bankruptcy proceedings at the request of Lilama 45.3 Joint Stock Company.

In an official dispatch sent to the State Securities Commission, Ho Chi Minh City Stock Exchange and shareholders, Duc Long Gia Lai said that the Company had incurred a debt to Lilama 45.3 Joint Stock Company.

According to the Appeal Judgment No. 03/2023/KDTM-PT dated February 8, 2023 of the Gia Lai Provincial People's Court, the Company must pay Lilama 45.3 the principal debt of more than VND 14.7 billion and more than VND 2.3 billion in late payment interest.

Duc Long Gia Lai said it has sent a document requesting the Gia Lai Provincial People's Court to review the conditions for Lilama 45.3 to submit a petition to open bankruptcy proceedings.

In July 2023, Lilama 45.3 filed a petition to open bankruptcy proceedings and the Gia Lai Provincial People's Court issued Decision No. 01/2023/QD-MTTPS to open bankruptcy proceedings. The Company has filed a petition to the High People's Court in Da Nang to review this Decision.

The High People's Court in Da Nang reviewed the Company's operations and found that the Company was not insolvent and had goodwill and commitment to repay Lilama 45.3, thereby issuing a Decision to cancel the Decision to open bankruptcy proceedings of the Gia Lai Provincial People's Court.

From the time the High People's Court in Da Nang issued the decision to cancel the decision to open bankruptcy proceedings until now, 8 months, the Company is still carrying out normal activities, and has continued to show goodwill, paying debts to Lilama 45.3 as committed.

Specifically, in the first and second quarters of 2024, Duc Long Gia Lai will pay Lilama 45.3 1 billion VND each quarter. Up to now, the total amount paid to Lilama 45.3 is 6 billion VND. At the most recent time, on June 27, the Company paid 350 million VND.

Citing the provisions of Clause 1, Article 5 of the 2014 Bankruptcy Law, Duc Long Gia Lai said that it did not violate the provision that "Unsecured creditors and partially secured creditors have the right to file a petition to open bankruptcy proceedings after 3 months from the due date of the debt and the enterprise or cooperative fails to fulfill its payment obligation".

The company said it has sent a document requesting the Gia Lai Provincial People's Court to review the conditions of Lilama 45.3's application to open bankruptcy proceedings, to not accept the application and to revoke the Notice of acceptance of the application to open bankruptcy proceedings.

In another development, on July 15, Duc Long Gia Lai's Board of Directors passed a resolution to sell all 97.73% of capital (equivalent to an investment of VND 249 billion) it owns at Mass Noble Investments Limited Company.

The Company authorizes the General Director to find a unit to appraise the value of this investment in accordance with the current situation, and at the same time find a partner to transfer it with the condition that the price is not lower than the face value and ownership value of the group at Mass Noble.

Mass Noble operates mainly in the field of manufacturing high-tech telecommunications components and electronic equipment with a factory located in Guangdong (China). This company plays an important role in the business results of Duc Long Gia Lai.

According to the 2023 annual report, Mass Noble recorded revenue of more than VND573 billion, contributing 51% to the group's total revenue. However, Mass Noble reported a pre-tax loss of VND78 billion, compared to a loss of more than VND113 billion in the same period. Total assets as of the end of last year reached more than VND412 billion, a slight decrease compared to VND456 billion at the beginning of the period.

The plan to divest from Mass Noble was announced by Duc Long Gia Lai in the context that the group is facing many difficulties due to two consecutive years of losses. In 2022, the loss was 578 billion VND and in 2023, the loss was 1,197 billion VND. The auditors also expressed doubts about the Company's ability to continue operating.

Source: https://baodautu.vn/lilama-453-lai-yeu-cau-mo-thu-tuc-pha-san-doi-voi-duc-long-gia-lai-d220439.html