Vinaxuki continues to have its assets put up for sale by Vietcombank for the 6th time

Recently, Joint Stock Commercial Bank for Foreign Trade of Vietnam ( Vietcombank – HoSE: VCB) – Transaction Office branch has issued a notice of auctioning off the collateral for the loan of Xuan Kien Auto Corporation (Vinaxuki) – Dak Nong branch, the current location of the asset is in Village 15, Dak Drong commune, Cu Jut district, Dak Nong province.

This is the 6th time the bank has put this asset up for sale after 5 previous unsuccessful auctions, with the starting price for these collateral assets being over 4.09 billion VND, a decrease of 455 million VND compared to the most recent auction.

The assets securing the loan of Vinaxuki - Dak Nong branch include: 2 Antimony reduction furnaces with a capacity of 100 tons/day; 1 Antimony furnace with a capacity of 100 tons/day; 1 Antimony ore dressing line with a capacity of 130 tons/day; wet ball mill, electronic vibrating feeder, spiral classifier, table screen, magnetic separator, fine jaw crusher, spare jaw; Antimony ore dressing equipment with a capacity of 110 tons/day; 1 Antimony ore dressing line - flotation, gravity with a capacity of 100 tons/day;

Along with that, Vietcombank also put up for sale for the third time the entire Vinaxuki Antimony refining system at the above address with a starting price of over VND281.8 million, a decrease of VND100 million compared to the most recent auction.

The total value of the assets for sale is nearly 4.4 billion VND.

Previously, in July 2023, Vietnam Joint Stock Commercial Bank for Industry and Trade Debt Management and Asset Exploitation Company Limited ( VietinBank AMC) also announced the handling of collateral assets of 15 Vinaxuki trucks in the warehouse of Vinaxuki Me Linh factory, all of which were not yet completed for shipment, manufactured since 2012 to recover debt from Xuan Kien Vinaxuki Automobile Joint Stock Company. The total outstanding principal and interest as of July 4, 2023 is VND 248.5 billion.

Vinaxuki continues to have its assets put up for sale by Vietcombank for the 6th time.

In September 2022, Vietcombank Thang Long branch also put up for sale the entire system of machinery and equipment at Automobile Factory No. 1 in Me Linh district, Hanoi - a branch of Vinaxuki with a starting price for this secured asset of more than 33 billion VND.

Previously, this branch had repeatedly advertised for sale the factory system, machinery and equipment of Vinaxuki Automobile Company Limited in Hau Loc District, Thanh Hoa Province. From the initial price of 44.3 billion VND, the bank reduced the price to more than 20 billion VND for this asset but still had no buyers.

In 2020, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) also announced the auction of assets which are debts of Vinaxuki and Xuan Kien Thai Nguyen Auto Company Limited with a total outstanding principal and interest as of September 15, 2019 of VND 1,265 billion.

The assets securing this debt include land use rights and assets attached to land in Tien Phong commune, Me Linh district, Hanoi, with a total land area of ​​over 138,814 m2. Along with that are machinery and equipment at Vinaxuki Me Linh factory; antimony ore mining rights and ore processing line in Dak Drong commune, Cu Jut district (Dak Nong); assets attached to land of Vinaxuki Thai Nguyen factory.

Vinaxuki, owned by Chairman Bui Ngoc Huyen, started its business in 2004 in the field of truck assembly. However, in 2009, Mr. Huyen expanded into the field of passenger car production with the dream of becoming the first Vietnamese person to produce passenger cars. Along with Truong Hai, this is one of the first two private automobile enterprises licensed by the Government to produce all kinds of automobiles and spare parts.

However, mistakes in development strategy have officially bankrupted this man's dream of Vietnamese cars.

In 2012, Vinaxuki had nearly 1,500 billion VND in overdue debt at banks. Mr. Huyen had to sell his house to get money to pay bank interest with the hope that the bank would restructure the debt. However, the banks did not dare to risk continuing to lend Vinaxuki capital and required the company to hand over the collateral.

In 2014, all three Vinaxuki factories had to stop operating, after which these assets were continuously put up for sale by the bank to recover debt .

Source: https://www.nguoiduatin.vn/vinaxuki-tiep-tuc-bi-vietcombank-rao-ban-tai-san-lan-thu-6-a624939.html