On February 28, 2024, BIDV – Vietnam Investment and Development Joint Stock Bank (BIDV, HOSE: BID) announced the selection of an asset appraisal organization for the debt collateral of Cat Tuong Agricultural Processing Joint Stock Company.
According to BIDV Long An Branch, Cat Tuong’s total debt as of January 12, 2024 was over VND 48 billion, including VND 33 billion of principal debt and over VND 15 billion of interest.
The loan was taken since 2018 and secured by real estate including: 4 land use rights with a total area of 18,207 m² and assets attached to the land of Mr. Doan Van Sang and Mr. Tran Van Sang in Thanh Tan commune, Tan Phuoc district, Tien Giang province; 3 land use rights with a total area of 3,033 m² and assets attached to the land of Mr. Tran Van Sang in Long Phuoc commune, Long Thanh district, Dong Nai province; 15 land use rights with a total area of 14,420 m² and ownership of houses attached to the land of Mr. Tran Van Sang in Long Phuoc commune, Long Thanh district, Dong Nai province.
Cat Tuong used to be a major player in the cultivation and export of dragon fruit.
|
Cat Tuong Agricultural Processing Joint Stock Company was established in 2018, headquartered in Thanh Tan commune, Tan Phuoc district, Tien Giang province, with Mr. Doan Van Sang as the legal representative.
Mr. Doan Van Sang and Mr. Tran Van Sang together established several companies named Cat Tuong, with their main business activities being production, processing, and export of agricultural products. In particular, the company is known as a “giant” in the dragon fruit export industry.
The company fell into debt when its leadership got involved in legal troubles, causing its business activities to come to a standstill.
In 2020, the Tieng Giang Provincial Police initiated a fraud case involving misappropriation of assets at Cat Tuong Agricultural Product Processing Co., Ltd and Cat Tuong Dragon Fruit Joint Stock Company (two companies within the Cat Tuong ecosystem).
The victims were Hong Linh Company in Ho Chi Minh City (where Mr. Nguyen Hong Chuong was the director) was deceived for over VND 100 billion, and Phuoc Thinh Dyeing and Weaving Co., Ltd (HCMC) was deceived for VND 50 billion. After the case was initiated for investigation, Mr. Doan Van Sang and Tran Van Sang sent letters to various government agencies claiming to be “wrongfully accused”.
After getting involved, the Supreme People’s Procuracy issued a document stating: “The Tieng Giang Provincial Police initiated the case for investigation, which is necessary and based on legal grounds, and the extension of the investigation period as agreed by the Supreme People’s Procuracy is based on legal grounds”.
