On August 16, LDG Investment JSC (LDG Corporation, stock code: LDG) announced that the Ho Chi Minh City High-Level People’s Court has issued Decision No. 58/2024/QD-PT (Decision 58) regarding the review request of the decision to initiate bankruptcy proceedings against LDG Corporation by the People’s Court of Dong Nai province.
The decision was made in relation to a debt dispute between LDG Corporation and Phuc Thuan Phat Trading and Construction JSC (Phuc Thuan Phat Corporation).
LDG’s project faced land-related issues in Dong Nai
According to Decision 58, the High-Level Court accepted the request to review the decision to initiate bankruptcy proceedings against LDG Corporation and annulled Decision No. 01/2024/QD-MTTPS dated July 22, 2024, made by the People’s Court of Dong Nai province.
The decision also clarified that the debt between LDG Corporation and Phuc Thuan Phat Corporation is still under dispute regarding its value and repayment method. It was emphasized that LDG Corporation has not lost its ability to pay its debts and that the company’s operations remain stable and normal.
Previously, LDG Corporation stated that the request for bankruptcy proceedings by Phuc Thuan Phat Corporation had caused significant damage to LDG Corporation, its shareholders, customers, and business partners. It also disrupted the company’s business restructuring process and ongoing collaborations.
In response, LDG Corporation took necessary measures to protect the legitimate rights and interests of the company, its shareholders, customers, and partners. The company is gradually restructuring its business operations, strengthening investment collaborations, and implementing financial solutions to fulfill its obligations to all stakeholders.
In the trading session on the morning of August 16, LDG’s stock price increased by VND700 per share, along with a positive trend in the real estate sector, reaching VND1,970 per share.
Prior to this, the company’s stock price had witnessed a significant drop following the arrest and detention of its leaders due to land-related issues in a project in Dong Nai province.
