Ricons records Coteccons owes more than 300 billion VND

At the end of June, Ricons recorded Coteccons' short-term debt of more than VND322 billion, before filing a petition asking the court to open bankruptcy proceedings against the company.

According to the second quarter financial report prepared independently by Ricons Construction Investment Joint Stock Company, this enterprise has more than 322.5 billion VND in short-term receivables from Coteccons Construction Joint Stock Company (CTD), an increase of about 28 million VND compared to the end of last year. This figure accounts for about 9% of the total short-term receivables from customers and is the second largest short-term receivable, after 647.5 billion VND from Gamuda Land.

Meanwhile, CTD's self-prepared second quarter financial report did not clearly explain the payable amount to Ricons.

Receivables are amounts owed by customers to a company for goods or services that have been delivered or used but have not yet been paid for. Short-term receivables are usually those with a remaining collection period of no more than 12 months. Receivables are considered assets on the balance sheet and are considered a current asset of a business. Managing receivables is important because it provides additional capital to reduce debt and support business operations.

With Coteccons not yet paying its debts, at the end of July, Ricons announced that it had filed a petition with the Ho Chi Minh City People's Court to open bankruptcy proceedings against Coteccons. The court accepted the petition on July 4.

Ricons said this was the result of overdue debt that Coteccons had acknowledged, but had not paid for many years. "We have considered the most optimal solution to recover the debt and have proactively sent many documents to Coteccons proposing a solution," the company wrote in a letter to shareholders.

During the process, Ricons said it had informed and updated Coteccons about the company's application to open bankruptcy proceedings with the hope of resolving the matter before the court accepted the application, in order to avoid possible adverse consequences. The company said it "had not received a goodwill response from Coteccons".

On Coteccons’ side , the company confirmed that there were transactions including receivables and payables (debts) between the two businesses. The reason started from the period before 2019, Coteccons and Ricons were both part of an ecosystem of seven member companies with mutual links including Coteccons, Unicons, Ricons, Newtecons, BM Windows, Sol E&C, Boho. At that time, Mr. Nguyen Ba Duong was in overall management.

During the operation of the ecosystem, some projects where Coteccons is the general contractor will assign Ricons as a subcontractor. From there, the two parties have incurred unpaid debts at the Newtaco project, Regina phase 4-5-6, Vinfast factory and Simco.

A representative of Coteccons told VnExpress that the reason the company did not pay its debt to Ricons was because the project investor had not paid. This person refused to name the late-paying investor, only saying that the contract signed between the two parties had a clause clearly stating that only when Coteccons received payment from the investor would it pay the subcontractors.

"When related parties have made transactions that generate debt, they must pay but must comply with the provisions of signed contracts and the law," Coteccons wrote in a letter to shareholders.

In addition, Coteccons said that the above debts are still stuck in the problem of determining the value and the documents meeting the legal requirements. This enterprise requested Ricons to "have a spirit of cooperation" to resolve the two above problems.

On the other hand, CTD said Ricons has not yet settled its debts at the Regina Hung Yen and Dong A projects, where Ricons is the general contractor and Coteccons is the subcontractor. The two sides also have some transactions for leasing equipment and using each other's utilities.

Coteccons and Ricons are two enterprises participating in two different consortia to jointly bid for the project of construction and installation of passenger terminal equipment (package 5.10) at Long Thanh airport ( Dong Nai ).

According to stakeholders, the Long Thanh airport terminal project is currently the main competition between Hoa Lu Joint Venture and Vietur Joint Venture. Hoa Lu Joint Venture is led by Coteccons, including 8 contractors such as Hoa Binh, Central, An Phong, Delta, Unicons, Thanh An and Power Line Engineering (PLE - Thailand). Meanwhile, Vietur Joint Venture is led by Ic Istas Construction Industry and Trade Group (Ic Istas) of Türkiye, with the participation of contractors in the ecosystem founded by Mr. Nguyen Ba Duong such as Ricons, Newtecons, Sol E&C.

Previously, the Airports Corporation of Vietnam (ACV) said the contractor selection would be completed in July. After that, the Long Thanh airport terminal project was started in August.

Siddhartha

Source link