Indochina Airlines had its license revoked for failure to maintain operations
On July 26, the court received a complaint from ACB against ICA for not repaying loans and interest rates, worth over USD1.36 million.
According to the court’s first verdict, Ha Dung will be personally responsible for the debt if his company cannot repay.
Last week, the court approved the bank’s proposal that Ha Hung Dung not be allowed to leave the country until the matter is settled.
ACB signed a contract with ICA to provide credit guarantee service worth USD1.19 million, with an interest rate of 6.5% per month from January 12 through April 12, 2010, and an interest rate of 9.75% per month after April 12, 2010.
Under their contract ICA was obligated to repay the debt by April 12, 2010. However, the company defaulted, and has failed to settle its debts until the current day.
Launching their first flight on November 25, 2008, ICA found itself facing difficulties just five months later due fuel prices.
After just two years in operation, the airline ceased all their routes. The airline declared bankruptcy and 35 of its agents lodged a petition with Civil Aviation Administration of Vietnam (CAAV) against ICA for debts amounting to over VND80 million (USD38,075). They also took the case to the municipal authorities of Hanoi for arbitration.
Vietnam Air Petrol Limited Company (Vinapco) sued ICA because of money owed them that reached a total of nearly VND25 billion (USD1.18 million) in fuel.
In early December 2011, the CAAV withdrew the license of ICA.