How did Quoc Cuong Gia Lai manage to pay more than 1,783 billion VND to Van Thinh Phat?

Quoc Cuong Gia Lai Joint Stock Company (QCG) is collecting written opinions from shareholders on a financial arrangement plan to pay off the huge debt related to the Van Thinh Phat case, in order to recover the Bac Phuoc Kien Residential Area project.

According to the announced verdict, QCG is responsible for paying back nearly VND2,883 billion to Ms. Truong My Lan (Chairwoman of Van Thinh Phat) to receive back the Bac Phuoc Kien project in Ho Chi Minh City. Up to now, the enterprise has managed to pay VND1,100 billion through prepaid revenue from hydropower transfer and personal loans.

To arrange the remaining amount of nearly VND 1,783 billion and repay previously mobilized funds, QCG's Board of Directors (BOD) submitted to shareholders for approval two main capital mobilization plans.

Asset transfer: Transfer of capital contributions in subsidiaries and associated companies. The Board of Directors commits that the transfer value will not be lower than the investment cost and will hire an independent appraisal unit to determine the price.

Strategic cooperation: Cooperate and invest in real estate products and projects with capable and demanding investors, including related investors.

To ensure flexibility and speed of implementation, the Board of Directors proposes that shareholders be empowered to decide on details of transactions that arise in accordance with the actual situation. Accordingly, General Director Nguyen Quoc Cuong (Cuong Do La) or his authorized person will be fully responsible for implementing all tasks related to this financial plan this year.

Regarding the debt between Quoc Cuong Gia Lai and Ms. Truong My Lan, in 2017, Sunny Island Company and Quoc Cuong Gia Lai signed a contract to buy and sell the Bac Phuoc Kien project (formerly Nha Be, Ho Chi Minh City) for nearly 2,883 billion VND. The enterprise chaired by Ms. Nguyen Thi Nhu Loan at that time used this money to pay off the bank debt.

After that, the two sides had a dispute, the Vietnam International Arbitration Center (VIAC) ruled that Quoc Cuong Gia Lai won the case and did not have to return the money it had received.

However, when the Truong My Lan case was prosecuted, the Ho Chi Minh City People's Court annulled the VIAC's decision and forced Quoc Cuong Gia Lai to return VND2,883 billion to regain ownership of the Phuoc Kien project. The company agreed to return the money it had received.

After taking the position of general director, Mr. Nguyen Quoc Cuong announced to rotate cash flow to pay off debt by divesting from hydropower projects, handling inventory, and developing the Marina Da Nang project.

According to the company's plan, the debt repayment will take place over about two years, starting in the third quarter of this year and ending in the first half of 2027. If the cash flow is stable, the company can pay earlier to regain the "vital" project.

Recently, the company has incurred loans from related parties. As of September 30, the company borrowed nearly VND507 billion from Ms. Lai Thi Hoang Yen and more than VND527 billion from Mr. Lau Duc Huy, respectively. Ms. Yen is the daughter of Chairman of the Board of Directors Lai The Ha and Mr. Huy is the brother-in-law of General Director Nguyen Quoc Cuong.

In the first 9 months, the company's revenue reached 354 billion VND, an increase of 46%, while after-tax profit was nearly 4 times higher than the same period, reaching 34 billion VND. However, this result is still far from the yearly target.

Source: https://dantri.com.vn/kinh-doanh/quoc-cuong-gia-lai-xoay-xo-sao-de-tra-hon-1783-ty-dong-cho-van-thinh-phat-20251205170203512.htm