Vietnam - Bianfishco proposes three debt repayment plans

Binh An Seafood Joint Stock Co (Bianfishco-BAF) has sent a report to Prime Minister, the State Bank of Vietnam Governor, General Department of Security, Can Tho city governance as well as the management board of Can Tho export processing zones and industrial zones to explain its hardships at this time.

Accordingly, temporary General Director of Bianfishco, Mr Tran Van Tri proposed three plans of re-stabilizing production. Firstly, he desired Can Tho City People’s Committee to play as an intermediary role in negotiations with farmers about debt of material purchase.

Secondly, he wants to sell his family’s own assets to repay the debt of 61 billion dong to Asia Commercial Bank (ACB). The assets include land in Can Tho, Soc Trang, HCM City and shares of Bianfishco. The value of mortgaged assets is around 500 billion dong.

Lastly, Bianfishco proposed to extend the time of bank debt repayment to 3 years until April 1, 2015; temporarily delay repayment of principal debts within 24 months; ask for stopping arising interests and pay interests till April 2014 as well as recovering loans and more loans for production stabilization.

Bank loans of Bianfishco:

- An Binh Commercial JS Bank (ABBank): 63.5 billion dong and US$10 million

- Bank for Investment and Development of Vietnam: 139.2 billion dong and US$2.6 million

- Vietnam-Thailand Bank HCM City Branch: US$3.5 million

- Vietnam Development Bank—Can Tho Hau Giang Branch: 31.02 billion dong

- Habubank HCM City Branch: 63.9 billion dong

- Vietcombank Can Tho Branch: 3 billion dong

- Vietnam Development Bank-Can Tho Branch: 20 billion dong

- ACB: 61.3 billion dong

- Eximbank Saigon Branch: almost 30 billion dong and US$304,800

Now Bianfishco owes over 245.1 billion dong of cost for purchasing materials from farmers, total US$16.4 million (equivalent with 344.8 billion dong) to nine banks. Total debt of Bianfishco is more than 1.275 trillion dong.

Mr Tri confirmed that the future of Bianfishco is satisfactory. If allowed to recover debts and gain more capital to implement contracts with foreign partners, the firm may reach revenue of US$100-150 million a year and repay current debts.

VietBiz24

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