VietNamNet Bridge – Minister of Finance Vuong Dinh Hue said that the Government had reported the Vietnam Shipbuilding Industry Group’s (Vinashin) debt situation to the National Assembly (NA). At this time, Vinashin is facing the risk of being sued in the UK.
Talking with the media on the sideline of the NA meeting on November 16, Minister Hue said the government had sent a detailed report on Vinashin to the NA. The report includes opinions related to this group’s debt. However, Hue did not disclose the solutions to deal with the debt.
On November 14, Deputy Prime Minister Vu Van Ninh told the media about Vinashin’s lawsuit in the UK. Ninh said Vinashin must pay its loans and the government would not pay its debt. However, he said that the lawsuit must be carefully considered to seek solutions.
On November 8, foreign newspapers reported that Vinashin and its 20 subsidiaries were sued by Elliott VIN B.V (the Netherland) in a court in the UK. The lawsuit may be related to Vinashin’s $600 million overseas loans mobilized through bonds.
Vice Chairman of the NA Committee for Economics Nguyen Duc Kien, said that Vinashin’s lawsuit is not a surprise because in business, conflicts can happen.
Kien said in principle, Vinashin is responsible to pay the $600 million debt and nobody can pay for it. “The government only takes responsibility for the $750 million of bonds sold in New York,” Kien said.
He added that the government has assisted Vinashin’s restructuring by transferring 30 percent of this group’s debt to the Vietnam Oil and Gas Group (PetroVietnam) and the Vietnam Shipping Lines Group (Vinalines). “We need to wait until the year-end to know Vinashin’s business results and to negotiate with lenders. We also need to evaluate the group’s situation after one year of restructuring to take the next step,” Kien said.
Regards to Vinashin’s lawsuit in the UK, Kien said this group needs to make negotiation with the creditor. In case it cannot reach an agreement with the lenders, it can file for bankruptcy under the law. It is similar for Vinashin’s subsidiaries.
Last November, Vinashin Chairman Nguyen Ngoc Su spoke in a cabinet press conference: “Nobody can pay debt for Vinashin. We borrowed and we will try to pay the debt at any cost. Lenders let see us to find solutions together.” VNE