BIDV has announced the selection of institutions to organize auctions to sell assets mortgaged by Sado Germany Window for a loan from the bank.

The collateral for the loan is real estate at the tempered glass factory in Bien Hoa City in Dong Nai province. This includes machines for production and six transport vehicles.

The reserve price for the debt incurred by Sado Germany Window is VND510 billion.

BIDV Ninh Binh and BIDV Tam Diep are also seeking buyers of debts incurred by Nam Ninh Construction and Nam Ninh Investment and Trade, respectively, in accordance with the credit agreements signed in 2014 and 2020. Both the companies are owned by Vu Duc Thong and operate in the field of construction and installation.

The total debt values of the two companies had reached VND752 billion as of October 29, 2023, including VND562.586 billion worth of principal.

The starting price for the debts is VND677 billion and the auction is scheduled to take place on November 29.

BIDV also said it is looking for partners to organize auctions to sell the Ha Hai-Quang Tri petroleum warehouse in Cua Viet Town, Gio Linh district in Quang Tri province. The asset is in the name of HaiHa Petro.

The warehouse, covering an area of 30,000 sqm and including petroleum storage tank area, E100 storage tanks, and level-1 oil and gas industrial works, has the starting price of VND176 billion.

HaiHa Petro is now running 22 petroleum stores and 200 customers who are distributors and general sale agents throughout the country.

VietinBank is also busy handling huge debts. Most recently, the bank announced the auction of the bad debt worth VND399 billion incurred by BBP Paper JSC, including VND212 billion worth of principal.

The debt is secured by workshops, machines and equipment and other items used for production set up on a land area of 32,000 sq m in Phu Ninh district of Phu Tho province.

The mortgaged assets also include the 10,000 ton per annum bamboo powder bleaching equipment line, other equipment systems, a 1,500KVA transformer, and a number of vehicles.

Though the value of the debt is VND399 billion, the starting price set by VietinBank is low, just VND60.895 billion. The debt has been put up for auction 10 times, but it remains unsold.

The first starting price set by BIDV for the auction held in September 2022 was VND350.3 billion. After 10 failed attempts, the starting price has been lowered by 82 percent (VND290 billion).

Agribank is one of the biggest creditors taking drastic measures to sell debts worth hundreds of billions of dong recently.

In the latest move, the bank announced the auction of 6,700 sq m of land in Vung Tau City with the land use right certificate granted to one individual. The reserve price of the asset is VND128.454 billion. The auction is expected to be held on December 1.

The bank is also seeking buyers for a land plot with the total area of 9,700 sq m in Phu My Town of Tan Thanh district with the starting price of VND162 billion. The auction will be held on December 7, but the bank has not revealed detailed information about those granted land use right certificate for this land.

The 3,071 sq m land plot at No 309 Binh Quoi in Binh Thanh district, HCM City, has been up for sale by the bank. 

The starting price of this asset is VND154.8 billion, which is VND12 billion lower than the starting price fixed at the auction held half a year ago.

Agribank also has other assets which are collateral for unpaid loans. One of them is the VND349 billion debt (the principal is VND96.887 billion) incurred by Song Hau Farm.

Agribank has announced auctions many times to clear debt over many years. Most recently, the starting price was slashed to VND98 billion, or equal to the principal.

Another asset is the complex of Tre Xanh Hotel and Tre Xanh Plaza with total area of 14,000 sq m at No 18 Le Lai street in Pleiku City in Gia Lai province. It was used as collateral for a loan provided by Agribank Gia Lai to the Hoang Kim Tay Nguyen Group. 

Tuan Nguyen