Crippled Bach Tuyet Cotton asks for bank delinquent debt breather
Source: 08-AUG-2008 Intellasia | VnExpress
Aug 8, 2008 - 7:00:00 AM Leaders of listed firm Bach Tuyet Cotton Joint Stock Co (coded BBT) recently asked Maritime Bank to extend the deadline of paying the bank's overdue debts instead of selling its assets by order of the court after August 5 like the lender's ultimatum. In late day, no feedback from Maritime Bank was offered.

Today Maritime Bank is to work with Bach Tuyet Cotton JSC's administrators to discuss the particular solutions for the bank debts.

Exchanging with VnExpress, BBT's general director Ta Xuan Tho said his firm and Nam Dinh Garment and Textile Co-the representative for 30% state capital in BBT-want to have more time to find out plans to deal with its current difficulties.

In the cotton producer's official sent to Maritime Bank wrote "with the current real strength, BBT has not been able to pay the bank loans yet."

BBT director board stressed, the most optimal and timely plan to restore its production, business and debt payment ability is to issue shares separately to strategic partners. However, three representatives from Nam Dinh Garment and Textile Co to date have not passed the plan.

Earlier, on July 29, Maritime Bank demanded BBT to pay the overdue debt worth about 21.4 billion dong within seven days. If not, the bank would sue and carry out procedures to sell BBT's assets by order of court under regulations.

Apart from 21.4 billion dong debt, BBT also mortgaged the land using right of 16,000 square metres in Vinh Loc industrial zone and cotton production lines to the bank.

Most recently, the firm announced to be late in paying July salary to employees and cur the size of labour force in some divisions as well.