Bank auctions off debt with real estate, mortgaged assets worth nearly 250 billion of a tycoon

The plot of land, measuring over 2,293 square meters, is located at 404 Dien Bien Phu Street, Thanh Khe District, Da Nang City. Photo: Van Truc

The Vietnam Agricultural and Rural Development Bank, South Da Nang Branch ( Agribank South Da Nang), has posted an auction notice for real estate and other assets to recover part of the debt owed by Southern Machinery Installation and Trading Service Company Limited, located in Hoa Khanh Industrial Park, Lien Chieu District.

This company, managed and legally represented by Mr. Le Ba Huy, engages in the business of installing various types of agricultural and fishing machinery, operating restaurants, selling wine and beer; manufacturing and wholesaling generators and excavators, and trading electrical appliances...

According to the bank's announcement, the total debt as of June 29, 2023, converted at the bank's exchange rate, is over 355 billion VND. This includes over 133 billion VND in principal and over 3.7 million USD in interest; and over 75 billion VND in interest and over 2.4 million USD (Mr. Huy borrowed in USD at the time of importing goods from abroad).

The debt is secured by land use rights and assets attached to the land, totaling over 2,293 square meters, at 404 Dien Bien Phu Street , Thanh Khe District, Da Nang City. In addition, there are other collateral assets of the company located in Hoa Khanh Industrial Park, Lien Chieu District, including office buildings, warehouses, equipment workshops, laboratories, generator rooms, engine assembly lines, casting equipment lines, etc., on two leased land plots totaling over 32,000 square meters.

This company's debt has been classified as non-performing for many years, but Mr. Huy's business is unable to repay the interest and principal. Agribank Nam Da Nang has set the starting price for the auction of the debt, including the real estate and collateral assets, at over 246 billion VND, with the auction to be held at Bao Viet Joint-Stock Auction Company.

However, since no customers registered to participate in the auction, Agribank Nam Da Nang stated that they will hold another meeting to discuss whether to issue another auction notice in the near future or to initiate legal action.

Source: https://laodong.vn/kinh-doanh/ngan-hang-dau-gia-khoan-no-co-bat-dong-san-tai-san-the-chap-gan-250-ti-cua-mot-dai-gia-1279487.ldo