Bank sells hotel and restaurant of Central Highlands tycoon

The assets to be auctioned are the entire construction works including Tre Xanh Hotel; Tre Xanh Plaza at 18 Le Lai, Tay Son Ward, Pleiku City, Gia Lai Province, along with auxiliary works and equipment accompanying the construction works.

The Tre Xanh Hotel and Restaurant Complex, Tre Xanh Plaza consists of 2 interconnected areas (area A and area B), built on a total land area of 2,733.57 m2. The total floor area is up to 14,339.41 m2.

Area A is built with 9 floors, including 53 hotel rooms meeting 3-star standards. Area B is built with 10 floors with 63 hotel rooms meeting 3-star standards.

The starting price for this complex is 96 billion VND. The auction will take place on August 4 in Gia Lai.

Tay Nguyen Group is a company listed on the HNX with the stock code CTC. However, CTC shares are being put on warning because the undistributed profit after tax as of December 31, 2021 is negative.

Closing the trading session on July 18, CTC was only traded at 3,000 VND/share.

*Bamboo Green Hotel of Hoang Kim Tay Nguyen Group is located in a prime location of Pleiku city. (Photo: CTC).*

CTC's three main business pillars include: Tre Xanh Plaza (including restaurants and hotels), Dong Xanh Park (An Phu commune, Pleiku city, Gia Lai), and a system of bookstores including: Pleiku Cultural Bookstore - Supermarket (Pleiku city), Dong Gia Lai Bookstore - Supermarket (An Khe town, Gia Lai), and Nam Gia Lai Bookstore - Supermarket (Ayunpa town, Gia Lai).

In addition, the company also has a number of cultural bookstores in Quang Nam, Binh Dinh, and Quang Ngai.

Although owning many cultural bookstores in many provinces and cities, CTC said that the restaurant and hotel sector of the Tre Xanh Plaza system is still the company's main source of revenue.

CTC also contributed 22% of charter capital at Gia Lai Tourism Joint Stock Company (Gia Lai Tourist).

CTC has a charter capital of 158 billion VND, of which a major shareholder holds 21.52%, which is Vietourist Tourism JSC. This enterprise is led by Mr. Tran Van Tuan, a member of the Board of Directors of CTC, as General Director.

In 2022, CTC achieved revenue of 39 billion VND, down 74% compared to 2021. Pre-tax profit was negative 9 billion VND, down 1,660% compared to 2021.

At the end of 2022, total liabilities were VND 183 billion, of which long-term debt was VND 16 billion. In the 2022 annual report, the company said that its borrowing capital was high, so the pressure to pay interest was very high.

The company's first quarter 2023 financial report shows that debts have almost not decreased compared to the end of 2022, with pre-tax profit of negative VND 2.75 billion.

The company said the reason was due to no revenue from commercial goods sales, while fixed expenses still had to be allocated according to progress.

As of March 31, the company had only VND205 million in cash, while short-term debt amounted to more than VND106 billion. The company’s two largest short-term creditors were BIDV (VND38 billion) and Agribank (VND37 billion).

Regarding long-term debt, as of March 31, CTC still had a long-term debt of 16 billion VND, of which 14.8 billion VND was owed to Agribank.

Bank puts up for sale a series of 400 real estate properties, villas, hotels, restaurants A list of 396 land use rights in Hanoi, Ho Chi Minh City, Da Nang, Hoi An (Quang Nam), Phu Quoc (Kien Giang), Ba Ria Vung Tau, Khanh Hoa, Can Tho... are collateral assets that need to be processed and are put up for sale by VietinBank.

Source