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VietNamNews

Seafood firm to sell property assets

Update: June, 09/2012 - 07:17

 

Seafood is processed by workers of Bianfishco. — VNA/VNS Photo Duy Khuong
HA NOI — Directors of Binh An Seafood Joint Stock Co (Bianfishco) on Thursday announced plans to sell property worth more than VND150 billion (US$7.2 million) to pay off debt and boost production.

Bianfishco closed in February with VND1.5 trillion ($73.2 million) in debt to financial institutions and suppliers. It resumed operations in May.

At a meeting with the Finance Ministry's Debt and Asset Trading Co and commercial banks on Thursday the company said it would restructure loans and create working capital to buy fish for processing.

It would sell a VND70 billion ($3.4 million) collagen drink processing factory, transfer its seafood research institute worth VND77 billion ($3.7 million) to the Ministry of Agriculture and Rural Development and sell other properties worth VND110 billion ($5.3 million).

The company will pay a total debt of VND55 billion ($2.62 million) to Eximbank and HCM City's Housing Development Bank and other debts worth VND60 billion ($2.86 million). This month, the company will also pay 20 per cent more of the debt for local farmers.

Bianfishco also proposed the Debt and Asset Trading Co, commercial banks and farmers to transfer their loan worth about VND1 trillion ($47.6 million) to shares . Bianfishco will own a 25 per cent stake.

The company was expected to increase its registered capital from VND500 billion ($24 million) to VND1,200 billion ($57.6 million) this year.

The Debt and Asset Trading Co and Viet Nam Development Bank branch in Can Tho City said to help Bianfishco maintain production, commercial banks needed to transfer the company's debt to share contributions.

The banks required Bianfishco to make its audit report public. In addition, Bianfishco needed to sell 30 per cent of its shares to mobilise more working capital.

General director Tran Van Tri said his company was negotiating with Asian Commercial and Viet Thai banks to contribute share capital to the company for mutual profit and sustainable development.

Until May 31, Bianfishco owned eight credit units worth VND988.65 billion ($48 million) and its debt to farmers was VND235 billion ($11 million). The company has already sold properties and paid VND50.3 billion ($2.3 million) to farmers and banks.

Bianfishco was established in 2007 and functioned strongly until the middle of last year when banks refused to extend its loans. It resumed operations early last month with 1,200 workers back on the job. The firm has contracts to export to Canada, France and the United States. Initially it will produce 100-150 tonnes of tra fish a day. — VNS

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