Using the right to rent headquarters as collateral to lend 300 billion VND to 4 companies
Since the beginning of 2023, Agribank has been selling a series of assets and debts related to Tan Hoang Minh Group and companies in the ecosystem. According to incomplete statistics and only at Agribank, Tan Hoang Minh has debts worth approximately VND 1,000 billion (provisional value).
Agribank has announced auctions for these debts many times but has not found a buyer.
Most recently, in mid-October 2023, Agribank announced the auction of bad debt worth nearly VND 88.54 billion of Bac Ha Development Investment Company Limited (Bac Ha Company) according to the credit contract signed on December 8, 2020. Of which, VND 79 billion is principal debt and more than VND 9.5 billion is interest.
The starting price in this first auction was nearly VND88.54 billion, equal to the value of the debt (including principal and interest). Agribank did not disclose information about the assets securing the above debt.
Bac Ha is a company in the Tan Hoang Minh ecosystem. Previously, at the end of September, the bank also put up for sale another debt of this company with a book value of 55.4 billion VND.
The debt is secured by third-party mortgaged assets, which are property rights arising from a long-term and irrevocable lease contract for the office building and headquarters of the National Political Publishing House, Truth, No. 24 Quang Trung, Hoan Kiem District, Hanoi with Tan Hoang Minh Hotel Service Trading Company Limited.
Regarding the headquarters building at 24 Quang Trung, this building has been rented by Tan Hoang Minh as its headquarters since the end of 2017 under a long-term, non-cancellable lease contract, valid until November 2058 between Tan Hoang Minh and Vietnam Infrastructure and Real Estate JSC (VIID).
Tan Hoang Minh has used the property rights arising from the headquarters lease contract alone as collateral for at least 4 companies in the ecosystem to borrow capital with a total outstanding debt of nearly 300 billion VND.
Among them is the debt of THM Thinh Vuong Real Estate Investment Company Limited (THM Thinh Vuong), which was put up for sale by Agribank with a starting price of VND 85,637 billion.
Not stopping there, the collateral is the property rights arising from the above-mentioned Lease Contract, which is also mortgaged to the bank by another company of Tan Hoang Minh, Phu Thanh Construction Investment Joint Stock Company (Phu Thanh Company). The debt of this company has a starting price of 69 billion VND.
At the end of September, Agribank announced the auction of debt at Ngoc Vien Dong Real Estate JSC. The estimated value of the debt as of August 31, 2023 is VND 81,709 billion. Of which, the principal balance is VND 71.52 billion.
Ngoc Vien Dong's debt also has third-party collateral, which is the property rights arising from the long-term and irrevocable lease contract of the office building and headquarters at 24 Quang Trung.
Break up the project to borrow
Agribank also put up for sale hundreds of billions of dong in debts secured by the "billion dollar" projects Thien Bao Phu Quoc Tourist Area and Hoang Hai Phu Quoc tourist complex invested by Tan Hoang Minh.
Part of the Thien Bao Phu Quoc project is used as collateral for a loan from Ha Phuong Investment Construction and Trading Services Company Limited (Ha Phuong Company). This debt is being offered for sale with a starting price of VND25,479 billion.
A part of Thien Bao Phu Quoc (over 11,000m2) was also used as collateral for a loan from Thanh Xuan Construction and Interior Design Consulting JSC, whose General Director is Do Hoang Viet, son of Do Anh Dung (former Chairman of Tan Hoang Minh). The debt value as of August 4 was VND127,464 billion.
Also in this project, 2,641 square meters of commercial and service land was mortgaged for a loan from Hanoi Import-Export - Investment, Business and Commercial Services Company Limited. The value of the temporary debt as of August 4 was 62.64 billion VND.
In addition, the bank is also looking for a partner to buy back 1,884.4 square meters of land in the D'Thien Bao Phu Quoc project, which is the collateral for the loan of Xuan Nam Construction Services Company Limited. The estimated value of the debt as of August 4 is VND45.89 billion.
In addition to Thien Bao Phu Quoc, Tan Hoang Minh also implemented the Hoang Hai Phu Quoc project in parallel on an area of 12.37 hectares.
In another announcement from Agribank, the bank is selecting a unit to auction the collateral assets, which are land use rights and assets attached to land with a total area of 1,644.5 square meters belonging to the Hoang Hai Phu Quoc project.
This asset was used by Tan Hoang Minh as collateral for a loan from Manh Loan Construction and Trading Company Limited. The estimated value of the debt as of August 4 was VND105,376 billion.
Also at the Hoang Hai Phu Quoc project, Tan Hoang Minh mortgaged 3 plots of land with a total area of 562.5 square meters for a loan from Green-Art Landscape Infrastructure JSC (represented by Do Hoang Viet). The estimated value of the debt as of August 4, 2024 is 37.89 billion VND.
In addition, Tan Hoang Minh also mortgaged 4 land use rights with a total area of 775m2 for a loan from Mivi Vietnam Trading and Service Company Limited. The debt value as of August 4 was 52.247 billion VND and is also being selected by Agribank Trang An to organize an auction.
Another subsidiary, Quang Trung Real Estate Investment Company Limited, also has a debt for sale at a price of 67 billion VND.
In addition, another legal entity belonging to Tan Hoang Minh, Anh Thang Construction Consulting Company Limited, is having its bad debt sold by the bank for 66.8 billion VND.
Previously, in March 2023, the bank also announced the auction of a series of assets including 1 car, 2 pickup trucks, 30 concrete mixers and many other equipment and machinery of THM-CONCRETE Production & Trading JSC, a member of Tan Hoang Minh Group.
This is the asset used as collateral for the company's loan at Agribank.
The value of the debt as of December 1, 2022 is VND 28,258 billion and is classified by Agribank as group 5 debt (debt with no ability to pay).
That is just a part of Tan Hoang Minh's debts at banks and currently only Agribank is actively selling the group's debts.
| AGRIBANK'S DEBTS ARE BEING SOLD (Unit: Billion VND) | |||
| STT | LOAN COMPANY | VALUE | TSDB |
| 1 | Bac Ha Investment and Development Company Limited | 88.54 | |
| 2 | 55.4 | Office lease contract at 24 Quang Trung, Hoan Kiem, Hanoi. | |
| 3 | THM Thinh Vuong Real Estate Investment Company Limited | 85,637 | |
| 4 | Phu Thanh Construction Investment Joint Stock Company | 69 | |
| 5 | Ngoc Vien Dong Real Estate JSC | 81.7 | |
| 6 | Ha Phuong Construction Investment & Commercial Services | 25,479 | Thien Bao Phu Quoc Tourist Area |
| 7 | Thanh Xuan Construction and Interior Design Consulting | 127,464 | |
| 8 | Hanoi Import Export - Investment, Business and Trading Services Company Limited | 62.64 | |
| 9 | Xuan Nam Construction Services Company Limited | 45.89 | |
| 10 | Manh Loan Construction & Trading Company Limited | 105,376 | Hoang Hai Phu Quoc Tourist Area |
| 11 | Green-Art Landscape Infrastructure JSC | 37.89 | |
| 12 | Mivi Vietnam Trading and Service Company Limited | 52,247 | |
| 13 | Quang Trung Real Estate Investment Company Limited | 67 | Not published |
| 14 | Anh Thang Construction Consulting Company Limited | 66.8 | |
| 15 | THM-CONCRETE PRODUCTION & TRADING JSC | 22,258 | Cars, concrete mixers, machinery |
| Total | 993,321 | ||
According to the investigation conclusion of the Investigation Police Agency, Ministry of Public Security, Do Anh Dung (Chairman of Tan Hoang Minh Group) and his son Do Hoang Viet, through the legal entities of Ngoi Sao Viet, Soleil, and Cung Dien Mua Dong companies, mobilized more than 13,972 billion VND in bonds. All 9 bond packages were created by the defendants using "fake" documents. The fraudulent behavior legalized the conditions and documents of the bond offering. |
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