The bank is about to auction nearly a trillion billion debt of petroleum giant Ninh Binh

As of December 10, the total outstanding debt of Trung Linh Phat Co., Ltd. at VietinBank Ha Giang branch was about 970 billion VND. Of which, principal debt is more than 681 billion, accumulated interest is nearly 197 billion, penalty interest is 83.5 billion, and the remaining about 8.5 billion is fees and late payment interest.

The collateral for this petroleum giant’s debt at VietinBank Ha Giang has 4 land use rights in Bac Quang district, Vi Xuyen district (Ha Giang) and Yen Khanh district (Ninh Binh). 6 red books in the name of Mr. Tran Van Dan, Chairman of the Board of Directors Linh Trung Phat are all in Ninh Binh. In addition, other collateral assets include a number of cars, inventory, property rights, receivable rights arising from Linh Trung Phat’s economic contracts, and 6 savings books.

This bank will find an organization to appraise the market value of this debt as a basis for determining the starting price for a public auction until December 25.

Linh Trung Phat is a petroleum wholesaler, headquartered in Ninh Binh City. At the end of last month, the company’s license to export and import petroleum (issued from August 2021) was revoked by the Ministry of Industry and Trade.

They must also transfer all balances and debts from the Petroleum Stabilization Fund to the state budget. According to data from the Ministry of Finance, the stabilization fund balance at this enterprise was nearly 27 billion VND, as of the end of the second quarter.

This business was once fined for not transferring the balance of the Petroleum Stabilization Fund to a bank deposit account. Earlier this year, the Ministry of Industry and Trade required this company to return more than 26 billion VND owed to the stabilization fund, after many reminders.

Most recently, Trung Linh Phat was administratively fined 245 million VND for fraudulently declaring and registering the distribution system and not maintaining the minimum petroleum reserve level. In mid-June, this company was also stripped of its petroleum import and export business license for 1 month.