According to BIDV’s announcement on November 13, the total outstanding debt of Tai Nguyen Company as of July 26, 2024, was nearly VND 5,721 billion, including over VND 2,506 billion in principal and nearly VND 3,215 billion in interest. Interest continues to accrue from July 27, 2024, until Tai Nguyen Company repays the principal of the loan at BIDV.
The collateral for the loan includes: the right to use land and assets attached to the land to be formed in the future of Phuoc Nguyen Hung Residential Area Project (now Kenton Node Project) located in Phuoc Kien Commune, Nha Be District, Ho Chi Minh City – the project mortgage contract was signed by Tai Nguyen Company with 3 banks, including BIDV, Vietnam Maritime Commercial Joint Stock Bank (HOSE: MSB), and another bank; the property right to exploit the stone mine belonging to Hoa Thach and Phu Man communes, Quoc Oai District, Hanoi – the mortgage contract was signed between Tai Nguyen Company, Hanoi Construction and Building Materials Construction Company Limited, and BIDV Branch of Transaction Center 2.
BIDV auctions the above debt with a starting price of VND 4,419 billion (excluding related costs for transfer of ownership/use of assets, registration fees, court fees, and other costs (if any) when purchasing the debt, these costs are borne by the auction winner; the purchase and sale of debt are not subject to VAT). Bidders are required to make a 10% deposit, equivalent to VND 441.9 billion.
The time for inspecting the assets is from 8:00 on November 13 to 17:00 on November 18. The auction will be held at 15:00 on November 20, 2024, at the office of Minh Phap Partnership Auction Company (the auction organizer) at 151 Tran Huy Lieu, Ward 8, Phu Nhuan District, Ho Chi Minh City.
It is known that BIDV has sued Tai Nguyen Company at the People’s Court of District 1, Ho Chi Minh City, according to a lawsuit filed on February 22, 2022. The Court later notified the receipt of the case regarding a credit contract dispute, and BIDV paid an advance court fee and court fees totaling nearly VND 2.4 billion.
On April 23, 2024, the People’s Court of District 1 issued a Decision to temporarily suspend the resolution of the civil case, thereby temporarily suspending the resolution of the commercial case at first instance between BIDV and Tai Nguyen Company.
In addition to BIDV, MSB also announced the sale of debt arising from lending business under the Credit Contract and Bond Purchase Contract signed between MSB and Tai Nguyen Company. The total outstanding debt of Tai Nguyen Company at MSB, temporarily calculated as of November 6, 2024, is over VND 1,141 billion, including over VND 296 billion in principal and over VND 845 billion in interest and penalty interest.
The collateral includes the right to use land and assets attached to the land to be formed in the future of the Kenton Node Project (mortgaged jointly with BIDV and another bank); 11.3 million shares of Ha Tay Joint Stock Company; and 5 certificates of land use right, ownership of houses and other assets attached to the land of Kenton Node Project.
The billion-dollar project remains stagnant after two restarts
Phuoc Nguyen Hung Residential Area Project (now Kenton Node Project) has been suspended for many years.
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Kenton Node, formerly known as Kenton Residences, is located in Phuoc Kien Commune, Nha Be District. Tai Nguyen Company is the investor, and the project was inaugurated in 2009. At that time, the project consisted of 3 subdivisions: Plaza, Residences, and Sky Villa; with 9 buildings comprising 1,640 apartments and a total investment of USD 300 million.
In 2010, the project launched the sale of the first 100 apartments with prices in the highest segment in the South, reaching USD 1,566-2,250/m2. However, the market was in a frozen state at that time, causing the sale of phase 2 to be stagnant. In 2013, the investor refunded the money to the buyers of the first phase.
In May 2017, the project was revived and renamed Kenton Node, with a total investment of over USD 1 billion. The investor stated that BIDV and MSB signed an additional capital commitment to continue the project. By mid-2018, the project came to a halt again.
In 2020, BIDV announced the sale of Tai Nguyen Company’s debt, with outstanding principal and interest of VND 4,063 billion as of March 29, 2020. The main collateral was the right to use land and assets attached to the land to be formed in the future of the Kenton Node project.
In 2022, there was information that Novaland (NVL) took over the project, and it was renamed The Grand Sentosa Nguyen Huu Tho Nha Be. However, NVL’s role was only as the project developer, not the investor. NVL promoted the project with an area of 10.7 hectares, 3,000 units (including 800 hotel rooms and 60 shophouses); and a total investment of USD 350 million. However, up to now, the project remains dormant, with no signs of construction resuming.
Updating the latest information on the shareholder structure of Tai Nguyen Company (as of April 2022), the chartered capital is VND 1,950 billion. The structure shows that Tai Nguyen Real Estate Development Joint Stock Company holds 99.82%, and the remaining 0.18% is held by Ms. Nguyen Thi Anh Thu, previously held by Mr. Hoang Van Luan. Mr. Vu Anh Tam is the Chairman of the Members’ Council and legal representative of Tai Nguyen Company and General Director and legal representative of Tai Nguyen Real Estate Development Joint Stock Company.
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