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VAMC seizes collateral of Sai Gon One Tower

Released at: 15:45, 22/08/2017

VAMC seizes collateral of Sai Gon One Tower

The Sai Gon M&C Tower. Source: holcim.com

Sai Gon M&C complex seized after Sai Gon One Tower JSC fails to pay debts of $308 million.

by My Van

The Sai Gon M&C complex has been seized due to its owners accruing bad debts of $308 million.

The Vietnam Asset Management Company (VAMC) said it had seized collateral from the Sai Gon One Tower Joint Stock Company (JSC), the complex owner, at 34 Ton Duc Thang Street, District 1, in Ho Chi Minh City on August 21, for the purpose of debt recovery in accordance with the law.

VAMC previously signed a debt purchase contract with a number of credit institutions for the debts of a group of customers, including the Sai Gon One Tower Joint Stock Company (formerly known as the Saigon M&C Real Estate Joint Stock Company), the Lien Phat Investment Joint Stock Company, the Minh Quan Investment and Construction Consultant Joint Stock Company, and the Tan Superdeck M&C Joint Stock Company, with total outstanding debts (principal and interest) at that time of more than VND7 trillion ($308 million).

“Although VAMC has repeatedly urged the group of customers to meet their repayment obligations, they have not done so nor adopted a viable repayment plan,” a representative from VAMC said.

VAMC asked the Sai Gon One Tower Joint Stock Company to hand over collateral to fulfill its obligations, but this was never done. It therefore moved to seize collateral. The process was conducted in accordance with Article 7, Resolution No. 42 from the National Assembly on addressing non-performing loans (NPLs).

The Sai Gon M&C complex has a total area of 6,672 sq m with total investment of $256 million. The Sai Gon One Tower Joint Stock Company was established in 2004.

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