Kenton Node Project: 2 banks sell debt, some reduce 1,300 billion VND

BIDV and MSB are both selling debt at Tai Nguyen Company, with collateral including the Kenton Node project in Nha Be, Ho Chi Minh City.

Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV) continues to auction the debt at Tai Nguyen Construction Production Trading Company Limited. The total outstanding debt is nearly VND 5,721 billion, including the principal balance of VND 2,506 billion and the interest and fees balance of VND 3,215 billion as of the debt purchase transaction (July 26).

The starting price for the auction is VND4,419 billion, down about VND1,300 billion compared to the first auction more than 3 months ago.

The assets securing the debt include land use rights and future assets at the Kenton Node project (in Phuoc Kien commune, Nha Be district, Ho Chi Minh City) and the right to exploit stone quarries in Hoa Thach and Phu Man communes, Quoc Oai district, Hanoi .

The Kenton Node project, which is used as collateral for the debt of the Resources Company, remains inactive after many years (Photo: Trinh Nguyen).

In addition to BIDV, Vietnam Maritime Commercial Joint Stock Bank (MSB) also announced the sale of debt arising from lending transactions under the Credit Agreement and Bond Purchase Agreement signed between MSB and the Resources Company. The total provisional outstanding debt as of November 6 was over VND1,141 billion, of which the principal debt was over VND296 billion, and the remaining interest and penalty interest was over VND845 billion.

The collateral includes land use rights and future land-attached assets of the Kenton Node project. The mortgage contract was signed between Tai Nguyen Company and MSB, BIDV and PVCombank, with BIDV as the asset management focal point.

In addition, the collateral also includes 11.3 million shares of Ha Tay Construction Production and Trade Joint Stock Company and 5 certificates of land use rights, house ownership rights and assets attached to land of the Kenton Node project, all mortgaged separately to MSB).

The price MSB sells debt is equal to the value of the debt (including the entire outstanding principal, interest and penalty interest) calculated at the time of the debt purchase and sale transaction.

The Kenton Node project is located in Phuoc Kien commune, Nha Be district, and was started in 2009. However, the real estate market fell into a frozen period, the investor encountered difficulties in capital, so the project was suspended for a long time, and was restarted but has not been completed yet.

Source: https://dantri.com.vn/bat-dong-san/du-an-kenton-node-2-ngan-hang-cung-rao-ban-no-co-noi-giam-1300-ty-dong-20241121080919677.htm