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SBIC prepares for bankruptcy procedures from Q1 2024
The Government has greenlit a bankruptcy resolution plan for the Shipbuilding Industry Corporation (SBIC) and its seven subsidiary companies.
In recent conclusions reached by the Political Bureau, the ongoing resolution process for SBIC and its subsidiaries involves the retrieval of assets and property rights of both SBIC and its seven affiliated companies, all in accordance with prevailing legal regulations.
The primary objective during the SBIC bankruptcy is to maximise the recovery of capital and assets while minimising the reliance on state budgets. Any use of state funds must strictly adhere to legal provisions, with a focus on reducing financial losses for the state, related organisations and individuals, particularly within the shipbuilding and repair sector.
To execute this plan, the government has mandated a thorough assessment of each entity's current status, prompting the development of specific action plans. For SBIC and its seven subsidiaries, including shipbuilding companies such as Hạ Long, Phà Rừng, Bạch Đằng, Thịnh Long, Cam Ranh, Saigon Shipbuilding Industry Co Ltd, and Saigon Shipbuilding and Marine Industry, an urgent review is required. The completion of necessary documentation and legal procedures for bankruptcy proceedings is expected by the first quarter of 2024.
Regarding Sông Cấm Shipbuilding JSC, the Government aims to recover the capital contribution from its parent company, SBIC. The subsidiary company Bạch Đằng Shipbuilding, a one-member limited liability company, will adhere to the bankruptcy procedures outlined in the law, including regulations related to the transfer of state capital. The anticipated timeframe for this process is the second quarter of 2024.
For businesses under the structure of the Vietnam Shipbuilding Industry Group (Vinashin) that were previously identified as not remaining in the SBIC structure, but have yet to complete restructuring, further action is required to recover assets and property rights during the bankruptcy and capital transfer process. The expected timeline for implementation is the second quarter of 2024.
The Government has also called for a study to apply appropriate mechanisms and policies within its jurisdiction and various ministries. Proposals will be made to the National Assembly, Supreme People's Court, and Supreme People's Procuracy to promptly issue guidelines, mechanisms, and policies to address difficulties and challenges arising in the SBIC and its seven subsidiaries bankruptcy proceedings.
Additionally, there is an emphasis on reviewing and accurately assessing the current situation, comprehensively calculating the assets, finances, and debt obligations of SBIC. A plan will be devised to settle the government's debt obligations at SBIC. Simultaneously, efforts will be directed towards enhancing the capabilities of domestic shipbuilding companies, accompanied by increased information dissemination to garner widespread public support.
The Government underscores its commitment to safeguarding the legitimate rights and interests of workers, preventing negative moral impacts, and avoiding disturbances to political stability and social order.
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