Phuong Trang bus operator sued over $134 mln debt

By Thanh Xuan, Thanh Nien News

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The Vietnam Construction Bank on Wednesday announced that it has filed a lawsuit against Phuong Trang Bus JSC over VND3 trillion (US$134.2 million) in unpaid debt.
The lender said the loans were disbursed by its predecessor, TrustBank, between 2010 and 2011 for Phuong Trang’s bus purchases and real estate projects.
Phuong Trang Bus JSC, headquartered in Ho Chi Minh City’s District 1, operates a number of bus routes connecting the city with provinces and cities in the southern and central regions.
The Construction Bank was taken over by the central bank in February 2015 following continued losses. The central bank then assigned Vietcombank, the country’s top lender by market value, to help restructure the Construction Bank.
Last year the Construction Bank sold VND500 billion ($22.4 million) in bad debts to the Vietnam Asset Management Company.

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