Related company Van Thinh Phat is late in paying nearly 5,500 billion in bond debt

Bong Sen Joint Stock Company, the enterprise involved in Van Thinh Phat's violations, is behind in paying 4,800 billion VND in principal and nearly 670 billion VND in bond interest.

This information was announced by the company on the Hanoi Stock Exchange (HNX). The reason given by Bong Sen Company is that the account is being frozen.

The batch of bonds with delayed principal and interest payments was issued from October 2021, arranged by Tan Viet Securities (TVSI). The total outstanding value is VND 4,800 billion, the interest rate is 10.5% per year and the interest payment is due every 3 months. Initially, this batch had a term of 5 years, but the principal payment date was later postponed to the end of June this year.

Previously, Bong Sen issued this bond to supplement capital for investment activities to develop potential projects in District 5 (HCMC). In fact, the above amount was contributed by the company to the investment cooperation contract with Vina Alliance Company Limited for the office building project, trade - service center and apartments at 152 Tran Phu.

Later, the 152 Tran Phu project was inspected and revoked. By November 2022, Bong Sen announced that it had asked Vina Alliance to refund the entire amount but lost contact with this partner. The company proposed a solution that if Vina Alliance paid, they would pay the principal to the bondholders. Because according to Bong Sen, the company's account and collateral assets mortgaged at Saigon Bank - SCB were frozen, so the payment order could not be executed and there was no way to handle it.

In an extraordinary meeting at the end of August, the company said it would dispose of assets to fulfill its obligations with the above-mentioned VND4,800 billion bond lot. The assets presented included shares of Daeha Company, mortgage records of Palace Saigon Hotel, Bong Sen Annex Hotel, Vietnam House Restaurant and two other properties in District 1... If the amount is not enough to pay, the company said it would dispose of other assets to settle all obligations.

The facade of Palace Saigon Hotel seen from Nguyen Hue walking street (District 1, Ho Chi Minh City). Photo: Bong Sen Corp

Bong Sen Joint Stock Company is a member company of Saigon Tourist Corporation ( Saigontourist ), which was equitized in 2005. This company owns a series of "golden lands" in the center of Ho Chi Minh City to build hotels such as Palace Saigon (Nguyen Hue Street), Bong Sen Saigon (Dong Khoi Street), Bong Sen Annex (Hai Ba Trung Street). In addition, the company also owns the restaurants Vietnam House, Lemongrass, Calibre, Bier Garden, Buffet Ganh Bong Sen and Brodard bakery chain with 18 stores.

Bong Sen once rose to prominence with the purchase of more than 51% of Daeha Joint Stock Company, the investor of the Daeha Trade Center - Daewoo Hotel complex (Ba Dinh, Hanoi). This enterprise once acquired Saigon One Tower Joint Stock Company - the investor of the building of the same name that had been "shelved" for many years.

The shadow of Van Thinh Phat also appeared at Bong Sen. In the bond lot that the company is in debt, the two primary purchasers for secondary issuance to retail investors are TVSI and Tan Thanh Long An Company, both of which are related to Van Thinh Phat.

Chairwoman Vu Thi Hong Hanh said the company is in the process of working and waiting for the conclusion of the authorities on the possibility of involvement in the wrongdoing case of Van Thinh Phat. Currently, this enterprise is on the list of 762 companies related to Van Thinh Phat. In addition, Bong Sen must also transfer money to the designated account as requested by the investigation agency to remedy the consequences of the case.

Regarding business performance, Bong Sen lost VND280 billion in the first half of this year, more than 3 times higher than the same period last year. In 2021 and 2022, the company also lost nearly VND186 billion and VND443 billion, respectively.

Siddhartha

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