Bank seizes debt from famous Vietnamese economist's business

Many banks have stepped up bad debt handling, many debts are being put up for sale - Photo: QUANG DINH

Agribank has just announced the auction of all debts of NHP Import-Export Production Joint Stock Company under credit contracts from 2016 and 2017.

The total value of the provisional debt as of July 10, 2024 is more than 58.8 billion VND. Of which, the principal balance is nearly 44 billion VND, the remaining debt is interest, overdue interest, and late payment interest.

The bank said the above interest will continue to accrue from July 11 until NHP Import-Export Production Joint Stock Company pays off all principal and interest on the loan.

Regarding collateral, Agribank said that the loan of NHP Import-Export Production Joint Stock Company is secured by 1 million NHP shares of Mr. Le Xuan Nghia.

The starting price for the above debt is more than 58.8 billion VND, equal to the value of the debt including principal, interest, and overdue interest. The auction will take place on August 14.

According to research, NHP Import-Export Production Joint Stock Company is headquartered in Tich Giang Commune, Phuc Tho District, Hanoi. The collateral for this enterprise's loan is 1 million NHP shares owned by Mr. Nghia.

However, according to an announcement from the Hanoi Stock Exchange (HNX), NHP shares have been suspended from trading since June 3, 2024. The reason is that the company has not taken measures to remedy the cause of the shares being put on the restricted trading list according to regulations.

Previously, this stock was restricted from trading for a long time due to not holding the annual general meeting of shareholders, late submission of reports... Before being suspended from trading, the market price of NHP stock stopped at 300 VND/share.

According to the 2018 annual report, NHP has a charter capital of more than 275 billion VND. The enterprise was established in 2013 with 4 founding shareholders, the main business lines are packaging production, trading imported plastic beads, printing and printing-related products...

Regarding Mr. Le Xuan Nghia - the person whose name and property are mortgaged for the loan at Agribank mentioned above, he is a famous economic expert in Vietnam. He is also the founder and former chairman of the board of directors of this company.

In the CV included in the annual report, Mr. Nghia was introduced as born in 1952, place of birth: Ha Tinh, professional qualification: PhD in Economics from Harvard University, USA. Mr. Nghia's share ownership at NHP at that time was more than 4.6 million, equivalent to 16.72% of capital.

Mr. Nghia’s current role at NHP is unclear. In the 2019 semi-annual financial report, the company said that Mr. Nghia was dismissed from his position as chairman in early August 2019.

Also in this report, the auditor emphasized that as of June 30, 2019, NHP's short-term debt exceeded its short-term assets by nearly VND 23 billion. Accumulated loss was more than VND 88 billion.

During the period, the company had no revenue from its main production and business activities, but all assets, including the plastic granule and plastic packaging factory, were transferred to a business cooperation with Viet Bach Import-Export Production Joint Stock Company for Viet Bach to carry out production.

The company then enjoys fixed income from Viet Bach's production and business results. These issues present uncertain factors that affect the company's ability to continue as a going concern, the auditors noted.

Source: https://tuoitre.vn/ngan-hang-xiet-no-doanh-nghiep-cua-chuyen-gia-kinh-te-noi-tieng-viet-nam-2024080314353429.htm