Businessman takes on bankruptcy fight at northern company

TN News

Email Print

A businessman who has saved two debt-ridden seafood firms from bankruptcy is drawing up plans to help a major company in northern Vietnam with similar turbulence.

Tran Van Tri told VnExpress news website on August 3 that he had discussed solutions to rescue Bac Trung Nam JSC from it's financial troubles with the chairman of the People's Committee in Thanh Hoa Province.

The taxi-to-tourism company is running debts of VND105 billion (US$4.97 million), nearly a 50 percent higher than its total assets. It owes 70 percent of the debt to three banks Vietinbank, Vietcombank, and BIDV and the rest to customers and partner companies.

Tri said he and the Debt and Asset Trading Company, a unit controlled by the Finance Ministry, were "making efforts" to negotiate with the creditors on restructuring and clearing the debts.

Pham Thanh Quang, director of the asset company, estimated that it would take the depressed firm at least a year to complete the restructuring.

Tri, who has came over on the firm's invitation, will buy stakes and become a major share holder in the debt-ridden firm.

Bac Trung Nam, which also specializes in health care, hospitality, and foreign language training, provides nearly 1,000 jobs in Thanh Hoa. The local government acknowledges it as a major firm in the north-central province.

The firm has become mired in debts since last year given the economic slump and tight monetary policies that raised interest rates.

Last month it called for help from Tri, who has succeeded in restructuring a debt of $76.7 million at by Phuong Nam Seafood JSC, one of the country's top ten seafood exporters in 2011, after being CEO of the exporter for half a year.

In mid-June, he stepped down and became the member of the board of the seafood firm after it showed signs of recovery.

From May to October last year Tri was CEO of Bianfishco, another seafood company that was on the verge of collapse earlier that year.

Bianfishco's debts fell by 40 percent, to US$48 million, in October after Tri stepped in.

Like us on Facebook and scroll down to share your comment

More Business News