Bank lowers asset price of one-time auto giant Vinaxuki

The starting price for these collateral assets is VND4,092 billion, a decrease of VND455 million compared to the most recent auction.

The assets securing the loan of Vinaxuki Dak Nong branch are currently located in village 15, Dak Drong commune, Cu Jut district, Dak Nong province, including: 2 Antimony reduction furnaces with a capacity of 100 tons/day; 1 Antimony furnace with a capacity of 100 tons/day; 1 Antimony ore dressing line with a capacity of 130 tons/day; wet ball mill, electronic vibrating feeder, spiral classifier, table screen, magnetic separator, fine jaw crusher, spare jaw; Antimony ore dressing equipment with a capacity of 110 tons/day; 1 Antimony ore dressing line - flotation, gravity with a capacity of 100 tons/day;

Along with that, Vietcombank also put up for sale for the third time the entire Vinaxuki Antimony refining system at the above address with a starting price of VND281,833 million, a decrease of VND100 million compared to the most recent auction.

A scene of devastation at a Vinaxuki production facility.

In September last year, Vietcombank Thang Long Branch also put up for sale the entire machinery and equipment system at the No. 1 Automobile Manufacturing Plant of Vinaxuki branch in Me Linh district, Hanoi . The starting price for this secured asset was 33,128 billion VND.

Previously, Vietcombank Thang Long Branch had repeatedly put up for sale the factory system, machinery and equipment of Vinaxuki Automobile Company Limited in Hau Loc District, Thanh Hoa Province. From the initial price of 44.3 billion VND, the bank reduced the price to more than 20 billion VND for this asset but still had no buyers.

In 2020, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) also announced the auction of assets that are debts of Vinaxuki and Xuan Kien Thai Nguyen Automobile Company Limited with a starting price of VND 1,351 billion.

This is the debt that the bank has disbursed to Vinaxuki and the Factory in Thai Nguyen since previous years. As of mid-September 2019, the total outstanding principal and interest of this loan is 1,265 billion VND.

The assets securing this debt include land use rights and assets attached to land in Tien Phong commune, Me Linh district, Hanoi, with a total land area of over 138,814 square meters. Along with that are machinery and equipment at Vinaxuki Me Linh factory; antimony ore mining rights and ore processing line in Dak Drong commune, Cu Jut district (Dak Nong); assets attached to land of Vinaxuki Thai Nguyen factory.

Vinaxuki, owned by Chairman Bui Ngoc Huyen, started its business in 2004 in the field of truck assembly. However, in 2009, Mr. Huyen expanded into the field of passenger car production with the dream of becoming the first Vietnamese person to produce passenger cars.

However, in 2012, this man's dream of Vietnamese cars officially went bankrupt when Vinaxuki owed the bank nearly 1,500 billion VND. Mr. Huyen had to sell his house to get money to pay the bank interest with the hope that the bank would restructure the debt. However, the banks did not dare to risk continuing to lend Vinaxuki capital and required the company to hand over the collateral.

In 2014, all three Vinaxuki factories had to stop operating, after which these assets were continuously put up for sale by the bank to recover debt.

Source