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|BIDV and NCB face difficulties in collecting debt from Saplastic|
The State Securities Commission of Vietnam has published the decision of the People’s Court of Ho Chi Minh City about opening bankruptcy procedures for Saplastic.
Established in 2001 as a limited company, Saplastic switched to the joint-stock company model from 2007 and its shares were listed on the Hanoi Stock Exchange (HNX) in September 2008. The company specialises in manufacturing plastic packaging, high-end paper packaging and components, as well as equipment for the printing sector.
According to its financial statement, as of the third quarter of 2019, it reported a debt of VND891.6 trillion ($38.77 billion), VND866.8 trillion ($37.69 billion) of which is short-term debt. The total debt is 3.2 times higher than its equity.
In the third quarter of 2019, its net revenue from sales and services was VND2.3 trillion ($100 million), lower than the VND240.05 trillion ($10.44 billion) the year prior. The accumulated net revenue from sales and services within the first nine months of 2091 was VND254.2 trillion ($11.05 billion).
Its two largest lenders of the company are BIDV (Nam Ky Khoi Nghia branch in Ho Chi Minh City) with VND399 billion ($17.35 million) and NCB (Saigon branch) with VND130 billion ($5.65 million).
Saplastic’s collateral backing up the loans from BIDV includes machinery, equipment, and the land use rights for land plots in District 1 and Tan Binh Industrial Park, Ho Chi Minh City.
Once Saplastic is bankrupt, BIDV and NCB face difficulties in collecting their loan amount. Along with loans from these two banks, Saplastic holds a debt of VND46 billion ($2 million) to Agribank's Phu Nhuan branch, VND69.9 billion ($3 million) to PVcombank, VND35 billion ($1.52 million) to Ho Chi Minh City Development Joint Stock Commercial Bank, and VND30 billion ($1.3 million) to Indovia's Cho Lon branch.