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Brokerage company announces closure

Update: December, 18/2013 - 08:44
Au Viet Securities Co, formerly listed as AVS on the Ha Noi Stock Exchange, announced on Monday that it would dissolve the company.— File Photo

HA NOI (VNS)— Au Viet Securities Co, formerly listed as AVS on the Ha Noi Stock Exchange, announced on Monday that it would dissolve the company.

It became the third brokerage to voluntarily cease doing business this year, following the closing of Sao Viet Securities and Cho Lon Securities. The company has six months, from January 1 to June 30 next year, to liquidate its contracts and pay its debts. Currently, Au Viet employs a staff of five, and the payment of salaries and allowances for workers must be finished by June 30 at the latest. To conduct the company closing, it has established an asset liquidation group of seven people, led by chairman Doan Duc Vinh.

The proceeds from the liquidation will be used to pay for employees, taxes and loans. The remainders will then be distributed to shareholders.

Vinh also said he would buy shares from small shareholders. "Shareholders can sell the shares on the over the counter market at negotiated prices," noted Vinh.

As of September 30, Au Viet only had VND221 billion (US$10.4 million) in assets, VND54.6 billion ($2.5 million) in cash, VND86.84 billion ($4 million) in short-term investments and VND20 billion ($943,390) in receivables. The company made a modest profit of VND6.1 billion ($287,700) during the first nine months this year. During the same period last year, it lost more than VND9 billion ($424,500).

Au Viet is still holding shares of Vung Tau Real Estate and Construction (VRC), Cuu Long Fish (ACL), Military Bank (MBB), retailer Pan Pacific (PAN) and HCM City Educational Book (SGD). Vinh said he would gradually sell these shares. Despite having to dissolve the company, Vinh stated he would continue to invest in stocks. — VNS

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