The branch of Vietnam Joint Stock Commercial Bank for Industry (VietinBank) in Phu Yen Province has petitioned the provincial authorities to sue Vung Ro Port Limited Company for its delay in repaying VND13.7 billion (USD652,380) in debts.
Vung Ro Port
According to the petition, the branch has requested the company to pay its debt, including both the principal sum and interest. The firm pledged to use the loan between 2011 and 2012, however, it failed to repay the debt on schedule.
The People’s Court of Tuy Hoa City said that they were dealing with the case.
The deadline for Vung Ro Port Company’s debt settlement is July 25 this year. If it fails to meet the deadline VietinBank Phu Yen will ask the court to sell the company’s collateral that it put up for getting the loan.
Earlier, the Phu Yen People’s Committee decided to suspend Nguyen Minh, director of the company for actions that had led to huge losses to the firm.
To have business capital, Minh had used the state-owned capital as collateral to get a VND300-billion loan from two commercial banks without seeking approval from the provincial People’s Committee.
Inspections also showed unusual signs in co-operation between the company and Dai Loc Production and Trading Ltd. Company in Binh Duong Province, including the transfer of the state-owned capital for Dai Loc.
Between 2008 and 2012, Vung Ro owed VND54 billion to Dai Loc, but later, it gave Dai Loc VND107.6 billion, offering a chance for it to appropriate the state-owned capital for its business activities. Dai Loc now still owes VND50 billion to Vung Ro, but since become insolvent.
The local People’s Committee has requested Minh to revoke the debt owed by Dai Loc no later than July 13. If Minh fails to do this, the committee will send the case to the police for criminal proceedings.
