A series of steel production and trading enterprises were recently put up for sale by banks, including enterprises with shares listed on the stock exchange.
Agribank has just announced the auction of the entire debt worth approximately VND 361 billion of KDG Vietnam Steel Company Limited and Khang Duy Investment Joint Stock Company (an enterprise with the same ecosystem as KDG Steel).
The book value of the two debts as of March 31 is 360,904 billion VND. Of which, principal debt is 250,480 billion VND, interest debt is 110,424 billion VND. KDG Steel’s debt has a provisional book value of 182.595 billion VND, while Khang Duy’s debt has a provisional book value of 178.308 billion VND as of March 31.
Debts borrowed by two businesses at Agribank An Phu Branch in the period 2018-2020. In the first auction announcement, Agribank hopes to collect the exact value of the debt as of March 31.
Assets securing KDG Steel’s debt include land use rights and other property rights arising from the land lease contract between KDG Steel and the Investor, Becamex IDC Investment and Industrial Development Corporation – LLC. Corporation. Investment project for the factory of KDG Vietnam Steel Co., Ltd. and the factory’s machinery and equipment.
Security assets for Khang Duy Company’s debt include land use rights and other property rights arising from the land lease contract signed between KDG Vietnam Steel Company Limited and the Investor General Investment and Development Corporation. Industrial Development – Becamex IDC Corporation Limited. Factory investment project of KDG Vietnam Steel Company Limited; tractors and semi-trailers, cars.
The above two businesses are registered with headquarters in Binh Duong and Ho Chi Minh City, operating in the field of producing iron, steel, cast iron and metal structures.
Agribank is offering to sell the debt of a steel industry enterprise, Nguyen Phat Steel Joint Stock Company (Tay Mo, Tu Liem, Hanoi). The debt arose under two credit contracts from 2012. The debt value as of January 2024 is 2,769 billion VND, of which principal debt is 1,607 billion VND. The bank does not disclose information about the debt’s collateral, the starting price is 1,820 billion VND.
Recently, a number of other steel enterprises have also had their assets sold by banks to recover bad debts.
In particular, BIDV has offered to sell debt of Viet Nhat Steel Joint Stock Company more than 20 times. Viet Nhat Steel’s debt is up to 447 billion VND, of which principal debt is 194 billion VND. After many price reductions, the starting price of this debt is just over 80 billion VND.
Collateral for the above debt includes real estate, cars of all types such as Toyota Camry GLI, Mercedes E240, Toyota Hiace and steel production lines.
VietinBank has also repeatedly offered to sell debt worth 183 billion VND (original debt 132 billion VND) of Australian Steel Joint Stock Company SSE and debt of 306 billion VND (original debt 267 billion VND) of Nam Thuan Steel Joint Stock Company. Both of these businesses are headed by Mr. Lam Van Hung as General Director. The starting price of the two debts is only equivalent to the principal balance of each debt.
