Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ) - North Saigon Branch has just announced the 11th auction of debt of Industrial Construction Joint Stock Company (Descon) to handle debt collection.
According to Vietinbank, the total outstanding debt of this company as of January 5, 2024 is more than 575 billion VND. Of which, the principal outstanding debt is more than 327 billion VND, the accumulated interest on time and the accumulated overdue interest is more than 247 billion VND.
Descon's entire outstanding debt at VietinBank is secured by 18 security contracts signed during the period 2015 - 2018. These include all construction contracts signed between Descon and related enterprises.
For example, the Construction Contract dated August 28, 2017 with Bien Ngoc - Ho Tram Company Limited (Hamptons 1 Project), the Construction Contract with Milton JSC (Pullman Project);
Property rights arising from the Construction Contract with Saigon Cam Ranh Joint Stock Company (Melia Cam Ranh Project), property rights arising from the Construction Contract with Paradise Bay Tourism Company Limited (Alma Project),...
In addition, the secured assets also include property rights arising from the Descon high-end eco-tourism and resort project in Ward 10, Da Lat City; property rights arising from the Framework Contract on the transfer of the Preches Project dated September 20, 2015 with Thao Dien Investment JSC; 20 land use rights in Nhon Trach District, Dong Nai .
The starting price for the auction of the entire debt is VND114 billion, a decrease of VND26 billion compared to the previous auction in mid-December 2023.
The bank notes that the guarantor is not cooperating in handing over the secured assets. The debt is sold without recourse. The starting price of the auctioned debt is the selling price based on the actual status of the debt's legal documents and the current secured assets of the debt.
The starting price does not include costs associated with transferring ownership/use of the property, taxes, registration fees and other costs (if any).
In case of arising taxes, fees, financial obligations with competent state agencies and third parties when transferring debt, the auction winner shall bear them.
Descon Company was established in 1976, formerly known as the Southern Design Institute, under the Design Institute of the Ministry of Light Industry. In 1989, the company changed its name to Light Industry Construction Company No. 2. Since 2002, the company has been equitized and transformed into Industrial Construction Joint Stock Company (Descon).
Descon operates mainly in the construction sector. At the end of 2018, the company received a decision to open bankruptcy proceedings from the People's Court of Ho Chi Minh City following a lawsuit filed by a foreign supplier.
According to research, this information was announced by Refrigeration Engineering Corporation (Searefico). Accordingly, Searefico has a construction contract with Descon as a subcontractor in the projects that Descon is implementing as the main contractor.
Searefico said it has sent notices of Descon's debts to the People's Court of Ho Chi Minh City to collect debts and minimize losses .
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