Bank recovers non-performing loans

Bank recovers non-performing loans

Banks are moving to seize thousands of land-use rights certificates and related assets as they seek to recover non-performing loans from borrowers that have failed to meet their debt repayment obligations.

According to Tiền Phong (Vanguard) newspaper, Sacombank has announced the seizure of collateral linked to bad debt involving LDG Investment Joint Stock Company. The assets include 507 land-use rights certificates, house ownership certificates and other assets attached to land at the Viva City project in the Giang Điền Residential and Service Area in Đồng Nai City.

Sacombank said the seizure was being carried out due to LDG's failure to fulfil debt repayment obligations and other commitments under credit and mortgage agreements signed between the two parties. The process is scheduled to take place from June 5 to June 25.

According to LDG's 2025 annual report, the Viva City project covers nearly 92 hectares and includes 3,200 townhouses and 37 villas. The project has a total investment capital of more than VNĐ1.53 trillion (US$57.95 million). As of March 31, LDG had invested more than VNĐ145 billion in the development.

The seizure comes as LDG continues to face financial difficulties. In the first quarter of this year, the company's core business activities were largely stagnant and it reported no new sales revenue.

Sacombank previously issued a separate notice regarding the seizure of collateral linked to a bad debt involving Vietnam Bamboo Airways Joint Stock Company. According to the bank, the loan was secured by collateral provided by FLC Group, while Bamboo Airways was the borrower.

Sacombank said it had issued notices requesting the parties involved to fulfil their debt repayment obligations. After those obligations were not met by the specified deadline, the bank proceeded to seize collateral in accordance with the terms of the relevant agreements.

The assets comprise land-use rights covering more than 86,308sq.m, including more than 86,267sq.m of rural residential land and more than 41sq.m of urban residential land.

The collateral corresponds to 355 land-use rights certificates, house ownership certificates and certificates of ownership of assets attached to land in Gia Lai Province. The certificates were issued to FLC Group on September 9, 2021 and are valid until July 27, 2071.

Vietnam Maritime Commercial Bank (MSB) has also announced the seizure of assets linked to Bamboo Airways.

The assets include 207 land-use rights certificates and assets attached to land in the residential villa area of the Đak Đoa Complex in Gia Lai Province.

According to MSB, the assets had been mortgaged to secure loans provided to Bamboo Airways. The bank said the seizure was undertaken for debt recovery purposes following the airline's failure to fulfil its repayment obligations under the relevant credit agreements. 

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