Bianfishco to restructure debt

[xiuchic]

Paying debts to material providers and banks remains the top priority of Binh An Seafood JSC (BAF), the company's general director Tran Van Tri has said.

Tri's declaration was included in an official document on the imminent restructure of Bianfishco, which was sent to southern Can Tho City's People's Committee and a number of central authorising agencies yesterday.

The debt-ridden Bianfishco's company shares, owned by CEO Pham Thi Dieu Hien, will be transferred to Sai Gon-Ha Noi Bank (SHB), who will therefore take control of a 50 per cent stake in Bianfishco.

Tri, who holds 2 per cent of Bianfishco's shares will be the company's legal representative.

The company's charter capital will be increased to VND1.2 trillion (US$58million) from its current amount of VND500 billion ($24 million).

Company leaders plan to announce the restructuring plan and debt repayment schedule next Monday.

Established in 2007 Bianfishco operated well until the middle of last year when banks refused to extend its financing arrangements.

Bianfishco's production was halted between February and May due to debts of $73.2 million owed to financial institutions and fish suppliers.