Bankruptcies to go ahead

HA NOI (VNS)— Deputy Prime Minister Hoang Trung Hai has instructed Viet Nam National Shipping Lines (Vinalines) to complete procedures to bankrupt two of its members, while the Viet Nam Shipbuilding Industry Group (Vinashin) plans to stop the operation of 216 subsidiary companies.

Hai chaired a recent meeting on the operation and implementation of Vinalines’ restructuring plan with relevant ministries, the State Bank of Viet Nam and Vinalines. Hai told the company to focus on solving financial problems and accelerating the equitisation of its members following the approved restructuring plan.

He instructed Vinalines to complete bankruptcy procedures for two of its members, Vinashinlines and Falcon, which were unable to pay back massive debts they owed last year.

Concerning Vinalines’debts, Hai told the group to work with the SBV and commercial banks to find a solution. According to local media, Vinalines has a debt of US$321 million itself and billions of dollars more in its subsidiaries.

Vinashin’s general director, Vu Anh Tuan, said the group would only focus on the parent company and 42 core units, while 216 underperforming units would be merged with existing companies or bought out.

With regards to debt restructuring, 19 banks have agreed to cut the US$1.35 billion the group currently owes by 75 per cent.

Minister of Transport Dinh La Thang said that at the end of this month, his ministry must submit a report to the Government on Vinashin’s progress, so the group needed to review all existing problems and propose solutions to resolve them. — VNS