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Lay-offs and partial shutdown hit BBT
Bach Tuyet Cotton Corporation (BBT) in HCM City cancelled all production activities on Monday and officially announced a postponement of July’s wages to all workers.
The corporation will only maintain the operation of key departments like accounting, administration and public relations, according to general director Ta Xuan Tho.
"We are presently unable to pay our employees on time. However, we will try our best to do so as soon as possible," he said.
BBT management filed paperwork for an extension on its overdue debt to Maritime Bank to discuss its future with its biggest shareholder, the state-owned Gia Dinh Garment and Textile Company. It has a 30 per cent share of BBT’s total assets. The deadline for the Maritime Bank loan is August 1.
BBT’s current debts are VND34 billion (US$2.1 million).
Tho earlier said that the only way to keep BBT afloat was to offer retail shares to outsiders, including investment funds. However, those measures were stalled when shareholders could not comprimise for internal reasons.
Meanwhile, Truc Anh Joint-stock Company, one of BBT’s strategic partners, withdrew a decision to invest in BBT due to BBT’s shaky ground.
VNS
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