Agribank has just announced the auction of the entire debt worth approximately VND 361 billion of KDG Steel Vietnam Co., Ltd. and Khang Duy Investment JSC (a business in the same ecosystem as KDG Steel).

The book value of the two debts as of March 31 is 360,904 billion VND. Of which, the principal debt is 250,480 billion VND, the interest debt is 110,424 billion VND. The debt of KDG Steel has a provisional book value of 182,595 billion VND, the debt of Khang Duy is provisional as of March 31 is 178,308 billion VND.

The debts were borrowed by two businesses at Agribank An Phu Branch in the period 2018-2020. In the first auction announcement, Agribank hopes to collect the exact value of the debt as of March 31.

The assets securing KDG Steel's debt include land use rights and other property rights arising from the land lease contract between KDG Steel and the Investor Becamex IDC Corporation - Industrial Investment and Development Corporation. KDG Steel Vietnam Co., Ltd.'s factory investment project and factory machinery and equipment.

The assets securing the debt of Khang Duy Company include land use rights and other property rights arising from the Land Lease Contract signed between KDG Steel Vietnam Co., Ltd. and the Investor Industrial Investment and Development Corporation - Becamex IDC Corporation. KDG Steel Vietnam Co., Ltd. Factory investment project; tractors and semi-trailers, cars.

The two above enterprises are registered in Binh Duong and Ho Chi Minh City, both operating in the field of iron, steel, cast iron and metal components production.

Agribank is offering for sale the debt of a steel company, Nguyen Phat Steel Joint Stock Company (Tay Mo, Tu Liem, Hanoi ). The debt arose under two credit contracts from 2012. The debt value as of January 2024 is VND 2,769 billion, of which the principal is VND 1,607 billion. The bank did not disclose information about the collateral of the debt, the starting price is VND 1,820 billion.

Recently, some other steel enterprises have also had their assets put up for sale by banks to recover bad debts.

BIDV has put the debt of Viet Nhat Steel JSC up for sale more than 20 times. The debt of Viet Nhat Steel is up to 447 billion VND, of which the principal is 194 billion VND. After many price reductions, the starting price of this debt is only over 80 billion VND.

Collateral for the above debt includes real estate, cars of various types such as Toyota Camry GLI, Mercedes E240, Toyota Hiace and steel production line.

VietinBank has also repeatedly put up for sale the debt worth VND183 billion (principal debt VND132 billion) of Australian Steel Corporation SSE and the debt worth VND306 billion (principal debt VND267 billion) of Nam Thuan Steel Corporation. Both of these enterprises are led by Mr. Lam Van Hung as General Director. The starting price of the two debts is only equivalent to the principal balance of each debt.