In early September, Phung town in Dan Phuong district was exploded by Quang Quyen Private Company’s $19 million bankruptcy. In late September, a VND300 billion ($15 million) bankruptcy was announced in Ha Dong district. Last week, another private company in Phu Xuyen district went bankrupt with total debts of several that is rumored to reach nearly VND1 trillion ($47.6 million). Police have defined this company’s debt of at least VND273 billion ($13 million).
These cases have given the alarm for “black” credit activities in Hanoi’s suburbs.
Phung town shaken by bankruptcy
The bankruptcy of Quang Quyen Private Company is the hottest topic these days of locals in Phung Town, Dan Phuong District, Hanoi. This is the largest bankruptcy in this tow so far.
Previously, Quang Quyen Private Company was very famous in Phung Town. Quang and Quyen, the couple who ran the firm, were praised to be “young but very talent at doing business.”
Local people said that the husband, Ta Viet Quang, 36, and his wife, Bui Thi Quyen, 35, were ice sellers. In 2001-2002, they bought a car to offer taxi service. In 2003, they established the Quang Quyen Tourism Co., Ltd.
This company suddenly expanded very quickly in recent years, with two auto salons, one truck agent and a goldsmith’s store. Quang was Vice Chairman of Phu Xuyen District’s Young Business Association. This company donated a lot of money to social activities in Phu Xuyen.
This firm’s bankruptcy, thus, was an explosion in Phung town. The bankruptcy broke out on September 16, when a creditor from Son Tay town came to Quang Quyen goldsmith’s store to collect debts and Quang Quyen Tourism Co., Ltd had to give the store to the creditor at the price of VND16 billion ($762,000).
Other creditors called Quang and Quyen but they turned off their cell phones. The couple disappeared on September 17. Creditors flocked to the company’s auto salons to take cars. At this time, the entire town was disturbed because hundreds of local resident lent this firm, totaling over VND400 billion (over $19 million).
Since 2005, the State revoked land of around 1,000 households in Phung town and compensated them with hundreds of billions of dong. Quang and Quyen, through agents, mobilized money from these families. After Quang and Quyen ran away, some agents had to sell all of their assets to pay debts for the couple. Those who cannot afford to pay debts also had to run away.
The couple have just been arrested. They declared that they borrowed land use right certificates of many local families to mortgage for banking loans, which were invested in estate projects. As the estate market has been frozen while bank loans became mature, they continued borrowing money from local people at very high interest rates to pay mature loans. Quang said he could not remember how many houses and plots of land he owned because he invested in so many projects.
$9.5 million bankruptcy in Ha Dong district
On the evening of September 23, many people flocked to this house to demand payment of their debts. These people said that the couple who live in this house, Nguyen Hong Hao and Nguyen Thi Dau, borrowed millions of USD from them but did not settle the debts. Since then, dozens of people have surrounded this house to hinder the couple from running away.
A creditor said that Mrs. Dau is a foreign currency trader for 20 years. Dau got rich in the past two years. She bought cars and many estate assets. Dau could easily borrow billions of dong from many local people.
By September 26, Ha Dong district policy have received around 20 petitions of creditors, who lent the couple nearly $10 million.
Police are investigating the case.
The latest bankruptcy in Phu Xuyen district
On October 11, Phu Xuyen police urgently searched Cuc’s home. According to policy, this woman,32, borrowed around VND273 billion ($13 million) and could not pay the debts. Cuc has ran away since October 5. Only her husband, Nguyen Xuan Hung, is at home. Hung gave his house, expensive car and some assets to some creditors.
According to local police, Cuc easily raised capital from local people by paying high interest rate (4.5 percent/month). To be trusted by creditors, Cuc showed off hershelf as a very rich woman, who owned a lot of land and gold. She then built up a network of agent to borrow money of hundreds of local residents. She borrowed money from one to pay the debt of another. When she was insolvent, she ran away with a total debt of nearly VND300 billion.
Lieutenant General Nguyen Duc Nhanh, director of the Hanoi Police Agency, has told police to quickly investigate and deal with similar cases and to warn people about this form of swindling.
TA
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