In early July 2024, the DXG Corporation (stock code: DXG) received a complaint from Mr. Nguyen Xuan Trieu, who claimed to represent 15 investors and owned 448 bonds (valued at VND 44.8 billion) issued by Dat Xanh Real Estate Services JSC (Dat Xanh Services).
In the complaint, Mr. Trieu wrote, “Mr. Do Van Manh, CEO of Dat Xanh Services, and Mr. Luong Tri Thin, Chairman of the Board of Dat Xanh Services, have embezzled VND 44.8 billion through the issuance of the above-mentioned bonds.” Mr. Nguyen Xuan Trieu also stated that after the investors transferred the money, Dat Xanh Services did not proceed with the signing of the contracts as agreed.
DAT XANH SERVICES DID NOT ISSUE THE BOND WITH CODE MNRCH2123001
“The information that Mr. Nguyen Xuan Trieu is accusing is completely untrue,” stated a document from Dat Xanh Group.
The information that the company claims is “untrue” includes:
(1) Dat Xanh Services has never issued bonds since its public offering of shares in 2021. Therefore, the company did not issue 448 bonds with the code MNRCH2123001 as mentioned by Mr. Nguyen Xuan Trieu. The bond code mentioned above has the issuer as Dat Xanh Southern Investment and Services JSC. Currently, Dat Xanh Southern is no longer in the list of subsidiaries of both Dat Xanh Services and Dat Xanh Group.
(2) Mr. Do Van Manh is not the CEO of Dat Xanh Services, and Mr. Luong Tri Thin is not the Chairman of the Board of Dat Xanh Services.
DAT XANH SOUTHERN’S BOND DEFAULT
Dat Xanh Southern was established in 2009 and operates in the real estate business and brokerage field.
Dat Xanh Southern once issued a bond with the code MNRCH2123001 with a total value of VND 150 billion on December 31, 2021. This is also the bond code that Mr. Nguyen Xuan Trieu mentioned in his complaint.
At the time of the issuance of the above bond, Dat Xanh Southern was still a subsidiary of Dat Xanh Group (holding 65%). However, according to the Q1/2024 financial statement, Dat Xanh Group has reduced its holding to 49.07% of Dat Xanh Southern’s capital and recognized this company as an associated company.
Mr. Do Van Manh has held the position of General Director and legal representative of Dat Xanh Southern since 2016 until now, but he does not hold a leadership role in Dat Xanh Services. Meanwhile, Mr. Luong Tri Thin was removed from the position of Chairman of the Board of Dat Xanh Services in October 2021.
The above bond has an interest rate of 12%/year, payable monthly, with a term of two years, maturing on December 31, 2023. However, by the due date at the end of 2023, the company could not fulfill its obligation to repay the principal and interest and promised to pay by December 31, 2024.
As of January 2, Dat Xanh Southern had to pay VND 150 billion in principal and nearly VND 19 billion in interest. The interest amount has accumulated from 12 consecutive times the company requested to “postpone payment.”
On May 2, the State Securities Commission of Vietnam (SSC) fined Dat Xanh Southern VND 85 million for failing to disclose information as prescribed by law.
Specifically, the company did not send the content of the information disclosure to the Hanoi Stock Exchange for the following documents: Report on the use of proceeds from bond issuance in 2021; Status of interest and principal payment of bonds in 2021; Financial statements for 2021; Report on the use of proceeds from bond issuance audited by a qualified auditing organization in 2022 and the first six months of 2023.
HOW IS DAT XANH SOUTHERN’S BUSINESS PERFORMING?
According to the enterprise registration document dated April 20, 2023, Dat Xanh Southern’s charter capital reached VND 320 billion. Â
The financial statements submitted to the Hanoi Stock Exchange show that the company has been making losses in the last two years. Specifically, while in 2021, the company only made a meager profit of VND 15 million, in 2022, it incurred a hefty loss of VND 122 billion. In the first half of 2023, Dat Xanh Southern lost nearly VND 5 billion.
In related news, the Ngo Viet Law Office, representing Mr. Luong Tri Thin, has also issued a statement in response to Mr. Nguyen Trieu Xuan’s complaint. Specifically, the law office is requesting the competent authorities to collect sufficient evidence regarding the untrue allegations made by Mr. Trieu, which have negatively impacted the reputation and business operations of Dat Xanh Group and Mr. Luong Tri Thin.
Therefore, the Ngo Viet Law Office requests that Mr. Trieu Xuan carefully consider his accusations and stop making false allegations. They also demand that he publish a correction and send an apology to Mr. Luong Tri Thin and the other accused parties.
If Mr. Trieu Xuan does not comply with these requests, the Ngo Viet Law Office will take the necessary measures to protect Mr. Luong Tri Thin’s image and reputation. This may include legal action to seek compensation for damages in accordance with the law.
Trial of Vạn Thịnh Phát Case from 5/3 – 29/4
The Ho Chi Minh City People’s Court will hold the first-instance trial of 86 defendants in the Vạn Thịnh Phát case from March 5th to April 29th.
Summoning Thousands of People to the Trial of Ms. Truong My Lan
In addition to the 86 defendants, the court has also summoned over 2,400 individuals with relevant rights and obligations, including nearly 200 lawyers, to serve in the trial of the misconduct case at SCB Bank and VTP Corporation.
Who are the 5 persons summoned for questioning in the Vạn Thịnh Phát case?
TAND TP HCM urges defendants to surrender to enjoy the leniency policy of the Party and the State.
How did 5 fugitive former SCB bank executives assist Ms. Truong My Lan?
The 5 defendants, former employees of SCB Bank, have been identified as actively assisting Truong My Lan in withdrawing money from the bank, resulting in significant consequences.
