On August 6, Mr. Dang Chi Cong, Head of the Panel of Judges of the Gia Lai Provincial People’s Court, signed Decision No. 01 on not initiating bankruptcy proceedings against Duc Long Gia Lai Group Joint Stock Company (address: 90 Le Duan, Phu Dong Ward, Pleiku City, Gia Lai).
Gia Lai Provincial People’s Court decides not to initiate bankruptcy proceedings against Duc Long Gia Lai Group. Photo: Dinh Cuong
According to this decision, the Panel of Judges found that after the Da Nang Court of Appeals annulled Decision No. 01 on initiating bankruptcy proceedings (October 2023) of the Gia Lai Provincial People’s Court, Duc Long Gia Lai Group continued to repay debts to Lilama 45.3 Joint Stock Company. The most recent payment of VND 350 million was made on June 27, 2024, totaling VND 6 billion so far. The remaining debt amounts to VND 11.4 billion, and the Group has committed to a specific repayment schedule.
The Court stated that Duc Long Gia Lai Group operates in multiple industries and has many branches and facilities in various localities. It is a business that is operating normally and employs a large number of workers.
According to the financial reports for 2021, 2022, 2023, and the first half of 2024, Duc Long Gia Lai Group has been profitable. Therefore, the Group does not fall under the case of inability to pay debts as stipulated in Clause 1, Article 4 of the Bankruptcy Law. Although the Group has specific debts due, it has fulfilled its payment obligations within three months to Lilama 45.3 Joint Stock Company. Thus, the Panel of Judges rejected the request of Lilama 45.3 Joint Stock Company to initiate bankruptcy proceedings against Duc Long Gia Lai Group.
Previously, in an interview with the press, Mr. Bui Phap, Chairman of the Board of Directors of Duc Long Gia Lai Group, stated that his company is profitable and has over VND 200 billion in bank deposits. The reason for not fully settling the debt with Lilama 45.3 Joint Stock Company is that his company always has a specific financial plan, and the funds are used for various purposes according to a well-planned strategy, such as corporate restructuring, tax payments, payments to customers, and employee salaries.
Mr. Bui Phap committed to a repayment schedule of VND 1 billion per quarter, with the total debt, including principal and interest, to be fully repaid by the end of 2026. He also revealed that the Group is owed thousands of billions by investors and customers but chooses not to exert pressure on them.
Saigon Glory Bond Scandal: Bitexco Chairman’s Plea for Payment Extension
Mr. Vu Quang Hoi, Chairman of Bitexco Group, has recently sent a heartfelt letter to the bond investors of Saigon Glory Company requesting an extension for the payment deadline.
Overcoming Challenges in Dealing with Bad Debts
In the newly passed Revised Securities Law, securities companies (SCs) no longer have the privilege to hold collateral. Therefore, SCs need to recognize that debt collection is their responsibility, and they should be extremely strict in assessing borrowers, ensuring compliance with principles, procedures, and conditions before granting loans.
Bring charges and arrest NHNN Inspector for forging documents to deceive
Phạm Trọng Cường, an expert in the field of State Bank Inspection and Supervision – Ho Chi Minh City branch, has recently been arrested by the Ho Chi Minh City Police for investigation into fraudulent activities involving misappropriation of assets and the use of counterfeit official stamps and documents.
Mounting debt forces businesses to sell off assets for financial stability.
Faced with the overwhelming burden of mounting debts, especially the pressure from billions of dong worth of bonds, many businesses are forced to liquidate assets or transfer subsidiary companies to balance their finances.
