The Can Tho municipal government will act as an arbitrator in the settlement of debts owed by the seafood processing company, Binh An SeaFood Joint Stock Company (Bianfishco), an official said.
Vo Thanh Thong, Vice Chairman of Can Tho City People's Committee, said the municipal government may arbitrate Bianfisco debts
On March 27, Vo Thanh Thong, Vice Chairman of the city's People's Committee, said that Bianfisco is in desperate need of assistance to avoid going bankrupt amid their current financial situation, adding that, it this occurs, the farmers would be the ones to be hit hardest.
He also said that the city government plans to hold a press conference on the firm’s situation within the week.
“One of the obstacles to settling these debts is the lack of any legal entity attached to Tran Van Tri, the husband of Bianfisco’s CEO, Pham Thi Dieu Hien. To date she has made no comments or started any legal proceedings that would allow him to take over leadership of the company,” he emphasised.
He also said that Bianfishco has three options on the table to deal with their problems. The first would be in coordination with local authorities. In this case, some investors and banks have already agreed to pay off the debts owed to farmers in April, as well as provide funds the continuation of their operations.
The second solution would be for the company to sell off its assets, including their real estate holdings in HCM City, Can Tho and Soc Trang. This would also include Hien to sell off her shares in order to settle the company's debt.
Currently Bianfisco owes approximately VND61 billion (USD2.92 million) to ACB Bank, and has put up a collateral valued at more than VND500 billion (USD23.96 million). The second option would require the company to a portion of the money from the sell-off to repay ACB, which would, in turn, be used as guarantees for business loans.
The third choice would be for the banks to extend their loan deadlines by three years, to March 2015, while forgiving the principal interest for two years, until April 1, 2014. These loans would then be restructured into new ones upon resumption of production.
Huynh Van Tuan, Chairman of Can Tho Industrial Parks and Export Processing Zones’ Trade Union, said Bianfisco workers are 'on leave' until April 2.
According to the investigative agency, as of March 23, Bianfisco owed a combined VND1.56 trillion (USD74.78 million). The figure includes its debts to nine banks, one other financial institution and to farmers. Hien's personal debts are included in the sum.
The firm paid off VND16 billion (USD767,018) of VND261 billion (USD12.51 million) worth of its debts to farmers, however unpaid packing, transportation and equipment fees continue to mount.
