Vietnam Debt and Asset Trading Corporation will buy Vietcombank's debt at Vinalines. The Vinalines is expected to equitise its parent company in the second quarter of 2015. — Photo talkvietnam.vn

HA NOI (Biz Hub) — Vietcombank has successfully sold off the US$19-million debt of Vietnam National Shipping Lines (Vinalines) to Vietnam Debt and Asset Trading Corporation (DATC), according to the tinnhanhchungkhoan.vn news website.

Vinalines borrowed the money from Vietcombank when it purchased Vinalines Sky vessel for more than $35 million in 2007.

Vietcombank had agreed to have this loan, which is due this year, reconstructed once, but Vinalines failed to pay because of financial difficulties.

Vinalines has been preparing for its parent company's equitisation in the second quarter of 2015 in line with the Government's directive. It has also negotiated with Vietcombank on numerous occasions for a second loan restructuring.

To support Vinalines in its corporate restructuring plan and help banks and credit institutions revoke loans from this business, the Government has assigned the DATC to buy the debts of Vinalines.

Vietcombank is the first one to implement this method. The sale of the debt to the DATC is seen as a success for Vietcombank, which was able to collect on a huge debt from a difficult business such as Vinalines at this stage.

Vinalines has proposed that the Government refrain from collecting additional paid-in capital raised from its initial public offerings of sea ports, which will be launched by the end of this year.

If the Government approves the proposal, the paid-in capital will serve as a financial source for the DATC to buy Vinalines' debts and an opportunity for banks to revoke debts from this business. — VNS