This debt is classified as group 5 debt (debt with potential loss of capital) with a total debt value as of September 21, 2023 of VND 279 billion (of which the principal debt is VND 189 billion).
Suoi Cat Company Limited's debt originated from a credit contract signed in 2006.
The contract dispute between the two parties led to the Phan Thiet City People's Court declaring in February 2018 that Suoi Cat Company must pay Agribank Binh Thuan the entire amount of 405 billion VND.
By September 21, 2023, the debt value has decreased to VND 279 billion.
The collateral for the loan is the mortgage contracts of future assets, the mortgage contracts of Land Use Rights and assets attached to land of a third party signed between Suoi Cat Company Limited and Agribank Binh Thuan Province Branch with Mr. Tran Quoc Cuong.
Specifically: The entire Suoi Cat Amusement Park in Tien Loi Commune, Phan Thiet City, Binh Thuan is owned by Suoi Cat Company Limited; 3 land use rights at 383 Tran Quy Cap, Tien Loi Commune, Phan Thiet City, Binh Thuan Province are owned by Mr. Tran Quoc Cuong;
Future asset value of Suoi Cat Amusement Park Phase 2 on a total land area of 21,132 m2 includes the following works: Roller coaster; Dance hall; Parking lot; Ticket gate; Bumper car; Fruit garden;
Future assets of Suoi Cat Amusement Park Phase 2 on a total area of 6,570.5 m2, including items: Outdoor stage with roof and leveling, central square, hotel, elevator, tempered glass and assembly;…
Auctioning the above debt, Agribank hopes to collect 189 billion VND, this price has decreased significantly compared to the starting price of 210 billion VND announced in the most recent auction (October 2023).
Agribank said that when buying back this debt, the buyer will have to accept potential legal risks such as: Disputes between Suoi Cat Company Limited, capital contributors of Suoi Cat Company Limited and the owner of the secured assets and parties related to the secured assets with organizations and individuals in the promise to buy, promise to sell, transfer, and mortgage the secured assets (illegally).
Debts such as tax debts, land rent debts, other debts of Suoi Cat Company Limited, of secured asset owners and parties related to secured assets.
Internal disputes of Suoi Cat Company Limited such as: Disputes between capital contributors of Suoi Cat Company Limited, disputes over legal representatives, disputes over debts between Suoi Cat Company Limited and functional agencies such as tax authorities..., and external creditors related or unrelated to the auctioned debt.
“These risks cannot be foreseen by the Bank, Agribank AMC LTD and the Debt Auction Company. The Bank, Agribank AMC LTD and the Auction Company will be transparent in information and support the provision of all available information/documents for debt auction participants to review and decide. Auction participants are responsible for receiving information, confirming and taking responsibility for risks that occur (if any) after successfully auctioning the debt; the Bank, Agribank AMC LTD and the auction organization are not responsible for resolving the above potential risks,” quoted from Agribank’s announcement.
It is known that Suoi Cat Company Limited is directed by Mr. Nguyen Van Son. This enterprise is the investor of Suoi Cat Tourist Area Project (Phan Thiet City, Binh Thuan Province) with a scale of 32.2 hectares.
The project has completed about 60% of the construction volume and put phase 1 into operation in 2010. By 2015, the project had stopped operating until now.
At the same time, this project has given rise to lawsuits between Suoi Cat Company Limited and a number of individuals and organizations.
The reason why KDL had to stop operating was because Suoi Cat invested heavily in buying land to expand the project and investing in other basic construction such as building a 5-storey hotel, which consumed a large amount of capital.
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