Bankruptcy of Vietnam Shipbuilding Industry Company begins

Vietstock – Bankruptcy of Vietnam Shipbuilding Industry Company begins

Following the government’s issuance of Resolution No. 220/NQ-CP on the execution of the bankruptcy proceedings of Shipbuilding Industry Corporation (SBIC, formerly Vinashin), the Ministry of Transport has taken steps to implement the bankruptcy proceedings.

Sources from the Ministry of Transport said that SBIC’s bankruptcy is inevitable and that bankruptcy will benefit subsidiaries that operate effectively and eliminate old debt liabilities. In fact, some shipbuilding companies under SBIC are doing well and are still making profits every year, but the money they make is not enough to pay interest and repay old loans from the Vinashin period.

After bankruptcy, the funds and assets obtained from the company’s liquidation will be used to repay debts, pay Vinashin’s remaining employee wages and social insurance in accordance with the bankruptcy law.

At the beginning of the year, Deputy Minister of Transport Nguyen Xuan Sang (in charge of the maritime sector) organized a working group to work with parent company SBIC and member companies across the country.

The Ministry of Transport is finalizing an implementation plan to determine the roadmap and specific responsibilities of agencies and units affiliated to the Ministry of Transport in the SBIC bankruptcy proceedings. The goals of Resolution 220 are to maximize the recovery of capital and assets; to minimize the use of the state budget. If it is really necessary to use the national budget, it must be handled in accordance with the law; to minimize the loss of funds and property to the country, relevant organizations and individuals, and the shipbuilding and shipbuilding industry.

Deputy Minister Nguyen Xuan Sang, working with SBIC member units, said that SBIC bankruptcy is essentially a sale of the business to a new owner. The completion of bankruptcy will bring opportunities for SBIC member shipbuilding companies to enter a new stage and seize development opportunities. After bankruptcy, the new business owner will not have to bear or be bound by old debts, and will have the opportunity to be more proactive in production and operations to ensure higher efficiency.

“We have two very important tasks: to ensure normal production and business activities, and to promote the implementation of bankruptcy proceedings in courts with jurisdiction.” Mr. Sang told the leaders of SBIC member units.

According to the roadmap, SBIC will soon integrate human resources agencies, review difficulties and obstacles, coordinate with the Department of Enterprise Management of the Ministry of Transport, eliminate bankruptcy procedures and create maximum conditions for the work of member companies. In the above process, SBIC member companies must abide by laws, regulations and market principles, minimize the loss of national funds and assets; ensure openness and transparency, and strengthen the responsibilities of relevant organizations and individuals; focus on protecting the legitimate rights and interests of workers; inspection and supervision The mechanism must ensure strict…

As for workers, Mr. Sang said the bankruptcy of SBIC would create conditions for business revival and restructuring. Therefore, no matter who the owner is, existing units still require a team of managers and experienced workers.

According to the process, member units and SBIC will submit bankruptcy procedures to the court. When the court files a case to declare bankruptcy, the assets, debts, and repayment priorities will be liquidated according to the court’s judgment. During this process, units that are operating and under contract remain functioning normally.

Previously, the Ministry of Transport issued a document to SBIC, requiring a review and comprehensive assessment of the current status of each enterprise; comprehensive records and documents to formulate specific treatment plans for each business. The units expected to be affected include: parent company – SBIC; subsidiaries (7 companies); 147 Vinashin enterprises and member units that have not completed restructuring before.

According to Resolution No. 220, Song Cam Shipbuilding Joint Stock Company is not bankrupt because the company has no bad debts and operates effectively. The remaining units of SBIC must go bankrupt. Although they have negative equity and bad debts, they all have large land funds, valuable assets and ship repair contracts.

The resolution clarifies that the Ministry of Transport is entrusted by the government to preside over the coordination, the Ministry of Justice, the Ministry of Planning and Investment, and the Ministry of Finance, together with the Supreme People’s Court, the Supreme People’s Procuratorate and other departments, and relevant courts to expedite the bankruptcy proceedings of SBIC.

SBIC was established in 2013 and was reorganized on the basis of Vinashin Group. SBIC’s registered capital at that time exceeded VND9.5 trillion.However, SBIC must assume the debt left by Vinashin on the 4th billion dollars Whether at home or abroad.

SBIC has eight subsidiaries, including: Pha Rung Shipbuilding; Bach Dang Shipyard; Ha Long Shipyard; Thinh Long Shipyard; Cam Ranh Shipyard; Saigon Shipbuilding Industry Company; Saigon Shipbuilding and Maritime Industry Company; Song Cam Shipbuilding Joint Stock Company.

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