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Banks salvage debt-ridden seafood firm

Update: August, 02/2012 - 09:34

HA NOI — Debt-ridden Binh An Seafood JSC (Bianfishco) has been rescued after signing a co-operative agreement with two banks on Sunday to restructure the company.

Bianfishco had signed agreements with Saigon-Hanoi Commercial Joint Stock Bank (SHB) and the Viet Nam Development Bank (VDB) to stabilise production and ensure the rights of workers, farmers and other shareholders, according to Tran Van Tri, general director of Bianfishco.

Under the agreement, SHB will guarantee payment of Bianfishco's loans from VDB. VDB has also committed to releasing Bianfishco's mortgaged property of which 50 per cent is owned by CEO Pham Thi Dieu Hien.

The agreement stipulates that SHB is recognised by the Can Tho Planning and Investment Department as taking control of a 50 per cent stake in Bianfishco from Hien.

Last month, SHB asked Can Tho City People's Committee to purchase debts and deal with financial issues and the restructuring progress of Bianfishco. In documents sent to the committee, SHB said it wanted to organise the entire restructuring of Bianfishco, including financial arrangements.

Bianfishco has also pledged to co-ordinate with the two banks to fulfil administrative procedures for SHB to be recognised as its major shareholder with a 50 per cent stake.

Bianfishco was established in 2007 and operated strongly until the middle of last year until banks refused to extend its financing arrangements. — VNS

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