Vinashin may use bond proceeds to pay debt

TN News

Email Print

The government is considering a request by troubled shipbuilder Vinashin to use US$300 million from an overseas bond issue this year to settle part of it debts.

According to a statement issued by the government on Wednesday, Deputy Prime Minister Nguyen Sinh Hung asked the Finance Ministry to handle the request so that Vinashin can repay its loan to French bank Natixis.

Vietnam raised $1 billion from its second global bond sales in January.

Hung also ordered Vinashin to cooperate with state oil and gas group PetroVietnam to negotiate the loan and repayment with Natixis.

Vinashin, pushed to the verge of bankruptcy this year, has been ordered by the government to go through a drastic restructuring process, retaining only its core business.

Vinashin will have to transfer 12 of its subsidiaries to PetroVietnam and state-run shipping line Vinalines by the end of September.

As of the end of August, Vinashin's debts amounted to VND86 trillion ($4.4 billion) while its total assets were valued at VND104 trillion.

More Business News