The High Court annulled the decision to open bankruptcy proceedings against Duc Long Gia Lai.

The business is profitable and has goodwill to pay debts.

The High-level People's Court in Da Nang has annulled the decision to open bankruptcy proceedings No. 01/2023/QD-MTTPS dated October 9, 2023 of the Gia Lai Provincial People's Court against Duc Long Gia Lai Group Joint Stock Company (abbreviated as Duc Long Gia Lai Group, address 90 Le Duan, Phu Dong Ward, Pleiku City). The decision of the high-level court takes effect from November 10, 2023.

The High People's Court in Da Nang found that Duc Long Gia Lai Group operates in many industries, has many branches and operating facilities in many different localities. Duc Long Gia Lai Group is a business that is operating normally and has many workers.

According to the Financial Report for the last 3 years and the first 9 months of 2023, the business results are profitable. After the decision to open bankruptcy proceedings by the Gia Lai Provincial People's Court, Duc Long Gia Lai transferred to the account of LILAMA 45.3 Joint Stock Company to pay the debt on October 12, 2023, the amount of VND 100,000,000; on October 17, 2023, it was VND 300,000,000 and on November 8, 2023, it was VND 3,600,000,000, a total of VND 4,000,000,000.

“At the same time, there is a commitment to a debt payment schedule according to the Civil Judgment Enforcement procedure. This is a new detail proving that Duc Long Gia Lai Group is not insolvent, has not gone bankrupt and has good will to pay its debt,” the High People's Court in Da Nang stated.

The cancellation of the decision to open bankruptcy proceedings No. 01/2023/QD-MTTPS dated October 9, 2023 of the Gia Lai Provincial People's Court will create conditions for enterprises to exercise their legal rights and obligations in production and business activities, contributing to economic and social development.

A trillion-dollar enterprise was forced to file for bankruptcy because of a debt of only…17 billion VND.

Previously, public opinion was stirred up by the decision of the Gia Lai Provincial People's Court to open bankruptcy proceedings against Duc Long Gia Lai Group. On February 8, 2023, the Gia Lai Provincial People's Court of Appeal issued a verdict on the dispute over the performance of a contract for the supply, manufacture and installation of hydraulic mechanical equipment between LILAMA 45.3 Joint Stock Company (located in Quang Ngai City, Quang Ngai Province) and Duc Long Gia Lai Group.

Accordingly, the court ruled that Duc Long Gia Lai Group must pay LILAMA Company (abbreviated) more than 17 billion VND. Of which, the principal debt is 14 billion 764 million VND, and the late payment interest is 2 billion 362 million VND.

On March 15, 2023, the Civil Judgment Enforcement Office of Pleiku City issued a decision to enforce the judgment upon request regarding the debt of Duc Long Gia Lai Group. However, while in the process of inventory and processing to enforce the judgment, on October 9, 2023, Judge Le Dinh Nam (Gia Lai Provincial People's Court) issued a decision to open bankruptcy proceedings against Duc Long Gia Lai Group.

According to a representative of Duc Long Gia Lai Group, when the decision to open bankruptcy proceedings was made and the information spread, the stock price and the psychology of shareholders were immediately affected.

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