Viet Nam Construction and Import-Export Joint Stock Company (Vinaconex) (VCG) has announced on its website a recently signed contract with Viettel Group to restructure the debt of Cam Pha Cement Joint Stock Company. Vinaconex, listed on Ha Noi Stock Exchange, has yet to provide more detailed information about the contract.
Allegedly worth US$127 million, the deal includes the sale of Cam Pha Cement's debts to Viettel, although they remain guaranteed by Vinaconex. Vinaconex currently owns 99.6 per cent of Cam Pha Cement Joint Stock Company's equity, equating to VND1.99 trillion ($94.76 million). Cam Pha Cement Company had been a financial burden on Vinaconex since going operational in 2008. Statistics show that since then, Vinaconex has paid VND2.393 trillion ($113.95 million) to service Cam Pha's debts, pushing Vinaconex into financial difficulty, according to Dau Tu Chung Khoan newspaper.
Up to 2012, Cam Pha Cement Company's aggregate losses were estimated to have reached VND1.588 trillion ($75.61 million). Withdrawing capital from Cam Pha Cement Company is expected to help Vinaconex secure its solvency. The deal's terms are expected to be completed within 30 days.