Rang Dong Holding (Rang Dong Plastics - RDP) announced that it has received a bankruptcy ruling from the People's Court of Ho Chi Minh City. This decision follows the court's review of a petition filed by Rang Dong Films (a subsidiary of RDP). Creditors have 30 days to submit claims detailing the total debt owed by RDP, including interest and contractual compensation.

In late January, RDP received notification from the People's Court of Ho Chi Minh City regarding the acceptance of Rang Dong Films' bankruptcy petition, citing RDP's insolvency. The court requested the company to explain the reasons for its financial distress, declare its assets, and provide a list of creditors and debtors.

Rang Dong Holding's transparent plastic film production line. Photo: RDP

Rang Dong Holding's transparent plastic film production line. Photo: RDP

Rang Dong Plastics is in a severe crisis. The company held two annual general meetings, both unsuccessful due to low shareholder attendance (around 15%) and the absence of any company leaders. One reason cited by a company representative was the failure to send out second invitations because they hadn't paid 55 million VND to the post office for the first round of invitations.

RDP has repeatedly missed deadlines for publishing its reviewed semi-annual, Q3, and Q4 financial reports, as well as its corporate governance report and the audited 2024 financial report. When questioned by the Ho Chi Minh City Stock Exchange in February, CEO Huynh Kim Ngan explained that the company was short-staffed, particularly due to mass resignations in the accounting department.

She also acknowledged that RDP has faced financial difficulties since the second half of the previous year. This has led to the company being classified as having non-performing loans in the national credit system, impacting the operations of its subsidiaries and member companies, all of which are currently inactive.

Simultaneously, Chairman Ho Duc Lam (brother of Ho Thi Kim Thoa, the former Deputy Minister of Industry and Trade who is currently a fugitive) and 4 other board members resigned. This left Rang Dong Plastics' board of directors without any members.

Mr. Ho Duc Lam, former Chairman of Rang Dong Plastics. Photo: RDP

Mr. Ho Duc Lam, former Chairman of Rang Dong Plastics. Photo: RDP

At the end of April, RDP shares were forcibly delisted from the HoSE. After transferring to the UPCoM, the Hanoi Stock Exchange (HNX) immediately suspended trading of the stock due to the company's serious violation of information disclosure obligations.

In mid-July, HNX issued a warning to the company for not holding its annual general meeting this year. RDP shares are currently suspended at a price of 1,300 VND per unit.

Established in 1960, Rang Dong Plastics was once a leading company in the plastics manufacturing industry. Before 2016, the company consistently profited tens of billions of VND. Afterward, RDP transitioned to a holding company model and invested in real estate and industrial parks. In 2019, it achieved its peak profit of over 70 billion VND, which fluctuated in subsequent years.

RDP reported a record loss of nearly 147 billion VND last year, with accumulated losses nearing 206 billion VND and short-term debt exceeding short-term assets by almost 122 billion VND. These factors raise doubts about the company's ability to continue operating. Also in 2023, Rang Dong Plastics had to pay over 178 billion VND in compensation after losing a lawsuit to Sojitz Planet, its former strategic partner, regarding a share purchase agreement.

The last time RDP published information was in the first half of 2024. At that time, it still had a loss of over 64.5 billion VND and owed tens of billions of VND in taxes.

Tat Dat