DATC Takes Over Vinashin’s Debts (Vietnam)
- Business & Finance
Vietnam’s state-owned Debt and Asset Trading Corp (DATC) and Vietnam Shipbuilding Industry Group (Vinashin), few days ago, reached a decision that DATC will issue $600 million of bonds overseas guaranteed by the Vietnamese Government to restructure the debts of Vinashin.
The decision comes after lengthy negotiations between Vinashin and its foreign debt owners and is the final step to be taken on the restructuring of the state owned group, which has fallen into insolvency.
Under the decision, Vinashin’s debts will be exchanged for bonds issued by the DATC. The 12-year maturity bonds will be issued with an annual interest rate of 1 percent, paying off principal and interest at maturity.
Before, in a meeting with Vinashin’s debt owners in Singapore in August, Vinashin reached credit restructuring agreements with 64.7 per cent of its debt owners, who hold 79.3 per cent of the total debt. And after that, in September, the UK High Court accepted Vinashin’s restructuring plan with approval from a majority percentage from creditors.
DATC, October 15, 2013