Bank auctions off debt with real estate, mortgaged assets worth nearly 250 billion of a tycoon

The land area is over 2,293 square meters at 404 Dien Bien Phu, Thanh Khe district, Da Nang city. Photo: Van Truc

The Bank for Agriculture and Rural Development of Vietnam, Nam Da Nang Branch (Agribank Nam Da Nang) has posted a notice of auctioning real estate and many other assets to recover part of the debt of Southern Installation Service and Trading Company Limited, headquartered in Hoa Khanh Industrial Park, Lien Chieu District.

This company, whose director and legal representative is Mr. Le Ba Huy, operates in the business of installing all kinds of agricultural and fishery machinery, operating restaurants, wine and beer; processing and wholesaling diesel engines, excavators, trading in electrical appliances...

According to the bank's announcement, the total debt as of June 29, 2023, converted at the bank's exchange rate, is more than 355 billion VND. Of which, the principal balance is more than 133 billion VND and more than 3.7 million USD; interest debt is more than 75 billion VND and more than 2.4 million USD (at the time of importing goods from abroad, Mr. Huy borrowed in USD).

The above debt is secured by land use rights and assets attached to land of more than 2,293 square meters at 404 Dien Bien Phu, Thanh Khe District, Da Nang City. In addition, there are other mortgaged assets of the company in Hoa Khanh Industrial Park, Lien Chieu District, including offices, warehouses, equipment workshops, labs, generator rooms, engine assembly lines, casting equipment lines... at two leased land areas of more than 32,000 square meters.

The debt of this company has been in bad debt for many years, but Mr. Huy's company is unable to pay interest and principal. Agribank Nam Da Nang set the starting price for the auction of the debt for real estate and mortgaged assets above at more than 246 billion VND, organized at Bao Viet Auction Company.

However, due to the lack of customers registering to participate in the auction, Agribank Nam Da Nang said it would meet again to discuss whether to issue a further auction notice in the near future as well as file a lawsuit.

Source: https://laodong.vn/kinh-doanh/ngan-hang-dau-gia-khoan-no-co-bat-dong-san-tai-san-the-chap-gan-250-ti-cua-mot-dai-gia-1279487.ldo