VKC Holdings (VKC) suffered a record loss of 350 billion, decided to sell 5 plots of land to pay off debt

VKC Holdings' record accumulated loss of 350 billion

On July 29, 2024, VKC shares no longer had any transactions and "froze" at VND 1,000/share. This is the stock code of VKC Holdings JSC, formerly Vinh Khanh Plastic Cable JSC, established and operating since 1993.

Regarding business activities, in the second quarter of 2024, VKC recorded revenue of VND 5.9 billion and a net loss from business activities of VND 1.8 billion. Despite the loss in business, VKC still had to pay interest on loans with a cost of more than VND 14.1 billion.

Once operating in the field of electric cable production, VKC Holdings (VKC) is suffering heavy losses and has to sell land to pay off debts (Photo TL)

Along with that is the selling expense of 1 billion VND, the business management expense of 11 billion VND. Compared to the same period, the business management expense has nearly doubled.

Excluding expenses and taxes, VKC reported a loss of VND29.2 billion in the second quarter of 2024. In the first 6 months of the year, the company lost VND44.9 billion after tax. These losses pushed VKC Holdings' undistributed accumulated loss to VND350 billion. At the same time, equity fell to negative VND129 billion.

Determined to sell 5 plots of land to pay off debt

Recently, the 2024 Annual General Meeting of Shareholders of VKC Holdings was held, the main content revolved around the company's debt settlement plans.

Many shareholders have questioned the plan to sell land owned by the company to pay off debts. Among these are plots of land that the company bought a long time ago and have now increased in price.

As a result, after the annual shareholders' meeting, VKC Holdings approved the auction and mortgage of 5 land lots with a total area of ​​more than 25,100 m2 to pay off debt.

These land lots include a 6,476 m2 lot in Binh Duong that is being mortgaged at a commercial bank. A 13,486 m2 lot is also in Binh Duong and is being mortgaged. In addition, the company has another 2,366 m2 lot that is in the process of being transferred.

Other assets of the company including tires, oil, batteries, and materials no longer needed will also be liquidated. The money from the liquidation will be used to pay off due/overdue debts or supplement the company's working capital.

Source: https://www.congluan.vn/vkc-holdings-vkc-thua-lo-ky-luc-350-ty-quyet-ban-5-lo-dat-de-tra-no-post305358.html