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SHB: Business report
Sai Gon - Hanoi Commercial Joint Stock Bank (HNX: SHB) announces information on debt of Kenmark Group in SHB Quang Ninh Branch as follows:
Kenmark Investment and Development Company Limited (KID) is a company which has 100% foreign capital and is directly under Kenmark Industrial Company Limited (Taiwan). To develop business of holding company, KID launched project on building Viet Hoa – Kenmark industrial zone in Hai Duong with total investment of more than VND 104 million
At the invitation of Bank for Investment and Development of Vietnam‘s Thanh Do Branch on 2/2008, SHB Quang Ninh Branch financed KID as co-lenders. Therefore, KID was financed by banks with total amount of USD 52.85 million and VND 57.5 billion
- BIDV Thanh Do lent USD 30.15 million and VND 27.5 billion
- Hanoi Building Commercial Joint Stock Bank’s Bac Ninh branch lent USD 8.1 million and VND 8.5 billion
- SHB Quang Ninh Branch lent USD 14.5 million and VND 21.4 billion
In fact, total capital of KID invested into the project as of 3/2010 was USD 90.8 million (Owner’s equity accounting for 30% of and borrowings from bank 70%)
Currently, account outstanding of KID in SHB Quang Ninh branch includes original debt of USD 14.1 million and interest debt of USD 1.23. Total loans of SHB have guaranteed assets at all including land use right and assets setting up in framework of the project. Value of guaranteed assets as of 8/2010 was USD 181,410,000 (According to D&A Company Limited which is under supervision of Mr. Peter Dinnin, member of RICS, General Manager of Vietnam Collieres International).
According to assessment after lending money and result of appraising guaranteed assets, the banks noted that KID used all borrowing capital to invest into the project based on commitments of credit contract
However, in the process of implementing the project, Kenmark Group has met difficulties in Dai Loan since the final 2010 due to effect of global financial crisis. Therefore, resources for launching the project in Viet Nam were influenced leading to KID’s difficulty in settling bank debts.
To face with the situation, SHB requested that Thanh Do BIDV (Clue bank) has responsibilities to work with investors of this project. Besides, SHB has actively contacted with leaders of KID and Kenmark to find solution for the situation. Chairman of Kenmark Group and Manager of KID often travel between Vietnam and Dai Loan to solve with the current difficulty. The banks, KID and Kenmark Group decided to handling with the debt as follows: KID strengthens to find customers to lend land of industrial park, banks to restructure time for debt payment and find abilities to transfer whole of industrial park to new investor. Negotiation process shows considerable interest of Kris Sakti Holdings Company of Malaysia in the project and all sides are continuing to negotiate related contents.
HNX
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