Vinalines files for bankruptcy, dissolves more subsidiaries

The Ministry of Transport has proposed adding four more member units of the Vietnam National Shipping Lines (Vinalines) to the list of bankrupt and inactive companies.

The project to adjust the restructuring process of Vinalines has been approved by the Ministry of Transport and recommended to the Prime Minister. Accordingly, the Corporation proposed to bankrupt Ca Mau Shipbuilding Industry Company Limited.

This enterprise currently has a charter capital of 137.7 billion VND with 100% capital invested by the parent company.

The reason for this proposal by Vinalines instead of continuing to hold 100% of the charter capital as previously proposed is that the enterprise has stagnated production and business activities, has financial imbalances, is unable to pay debts, and has not been able to develop a feasible business plan.

Previously, the Corporation allowed two other enterprises, Falcon Petroleum Transport Joint Stock Company and Vinashinlines Telecommunication Transport Company Limited, to carry out bankruptcy procedures for similar reasons.

In addition, Vinalines also proposed to dissolve and terminate its operations after transferring the projects it is implementing, including: Ben Dinh - Sao Mai Port Development Joint Stock Company; Vinalines Maritime Vocational College; Vinalines - Dong Do Ship Repair Company Limited.

Vinalines explained that these three entities were established to manage an investment project. However, the objectives of these projects are no longer there, the enterprises are not profitable, so terminating operations will help both the Corporation and its partners to relieve some of the financial burden.

In addition to the three initial focal points, up to now, the Corporation has decided to terminate operations and dissolve four other enterprises: Vinalines Northern Petroleum Trading Company; Maritime Petroleum Trading Company; Vinalines Can Tho Maritime Company; and Southeast Asia Maritime Human Resources Development Center.

Along with dissolving and bankrupting 4 more units, Vinalines also requested to divest more deeply in 10 seaports where the corporation holds controlling shares.

Specifically, if approved by the Prime Minister, the enterprise will reduce its capital holding ratio at 4 major ports: Hai Phong, Quang Ninh, Da Nang Saigon from 75% to 51%; Adjust the charter capital holding ratio from 75% to 49% for the ports: Can Tho, Nghe Tinh, Cam Ranh; Reduce the charter capital holding ratio to below 50% instead of 50 - 65% as present for Khuyen Luong and Nam Can ports.

At Nha Trang port, the Corporation will divest all and transfer it to the locality, Khanh Hoa province, for management.

Explaining this proposal, both leaders of the Ministry of Transport and Vinalines acknowledged that maintaining a controlling stake of over 50-75% as planned recently caused the IPO process of seaports to almost fail when the sales rate was only less than 20% of the plan.

In fact, at major ports, despite planning to sell 25% of shares, the Corporation currently still holds nearly 95% at Hai Phong and Da Nang ports, while at Quang Ninh Port this ratio is up to 98%.

If this proposal is approved and the divestment process goes smoothly at the end of this year, Vinalines will likely have more than VND2,000 billion to restructure its debt because the Government has agreed in principle to allow the enterprise to use the proceeds from the IPO of its member units to restructure its debt.

Theo-Vnexpress