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SACOM denies "baseless" bankruptcy rumour
Do Van Trac, general director of the HCM City Stock Exchange-listed Cable and Telecommunication Material Company (SACOM), yesterday rejected rumours that his company is almost bankrupt as "baseless."
"A company goes bankrupt when it is not capable of repaying its debts.
"So it cannot be said our company is implementing bankruptcy procedures as we do not have debts and we even have cash at several banks."
His company had over VND660 billion (US$38 million) in three banks, including BIDV, ACB and Sacombank, he said.
SACOM has been placed on a watch list by the exchange since February 16 after it announced losses in 2008 due to financial investments and declining demand for its products. It had to create a fund worth VND247 billion to make a provision for financial risk, which caused a net loss of VND67 billion.
SACOM currently has in hand several real estate projects, according to Trac, including a 50ha residential area in Nhon Trach, southern Dong Nai Province, an office and apartment property in HCM City, and a 20ha golf resort-hotel complex in the resort city of Da Lat.
He has told investors he is in touch with police who are investigating the source of the rumour.
VietNamNet, Viet Nam News
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