Agribank has just announced the auction of the entire debt worth approximately VND 361 billion of KDG Steel Vietnam Co., Ltd. and Khang Duy Investment JSC (a business in the same ecosystem as KDG Steel).

The book value of the two debts as of March 31 is VND360,904 billion. Of which, the principal debt is VND250,480 billion, the interest debt is VND110,424 billion. The debt of KDG Steel has a provisional book value of VND182,595 billion, the debt of Khang Duy is provisional as of March 31 is VND178,308 billion.

The debts were borrowed by two businesses at Agribank An Phu Branch in the period 2018-2020. In the first auction announcement, Agribank hopes to collect the exact value of the debt as of March 31.

The assets securing KDG Steel's debt include land use rights and other property rights arising from the land lease contract between KDG Steel and the Investor, Becamex IDC Corporation - Becamex IDC Corporation. The KDG Steel Vietnam Company Limited factory investment project and the factory's machinery and equipment.

The assets securing the debt of Khang Duy Company include land use rights and other property rights arising from the Land Lease Contract signed between KDG Steel Vietnam Co., Ltd. and the Investor, Industrial Investment and Development Corporation - Becamex IDC Corporation. KDG Steel Vietnam Co., Ltd. Factory investment project; tractors and semi-trailers, cars.

The two above enterprises are registered in Binh Duong and Ho Chi Minh City, both operating in the field of manufacturing iron, steel, cast iron and metal components.

Agribank is offering for sale the debt of a steel company, Nguyen Phat Steel JSC (Tay Mo, Tu Liem, Hanoi). The debt arose under two credit contracts from 2012. The debt value as of January 2024 is VND2,769 billion, of which the principal is VND1,607 billion. The bank did not disclose information about the collateral of the debt, the starting price is VND1,820 billion.

Recently, some other steel enterprises have also had their assets sold by banks to recover bad debts.

BIDV has put the debt of Viet Nhat Steel JSC up for sale more than 20 times. The debt of Viet Nhat Steel is up to 447 billion VND, of which the principal is 194 billion VND. After many price reductions, the starting price of this debt is only over 80 billion VND.

Collateral for the above debt includes real estate, cars of various types such as Toyota Camry GLI, Mercedes E240, Toyota Hiace and steel production line.

VietinBank has also repeatedly put up for sale a debt worth VND183 billion (principal debt of VND132 billion) of SSE Australia Steel JSC and a debt worth VND306 billion (principal debt of VND267 billion) of Nam Thuan Steel JSC. Both of these companies are led by Mr. Lam Van Hung as General Director. The starting price of the two debts is only equivalent to the principal balance of each debt.