VietinBank's Tay Ninh branch announced a collaboration with the Ho Chi Minh City Asset Auction Service Center to auction two collateral assets belonging to Lavifood Joint Stock Company, aiming to recover outstanding debt.
The assets up for auction include land use rights, construction works, and the complete machinery and equipment system of the Tanifood Tay Ninh agricultural processing plant project, located in Thanh Duc commune, Tay Ninh province.
The first asset is the land use right for a plot exceeding 142,900 m2, along with the structures built on it, which house the Tanifood Tay Ninh Plant. This asset has a starting price of approximately 780 billion dong, consisting of over 460 billion dong for the land use right and around 320 billion dong for the construction works.
The second asset is the complete production line machinery and equipment system of the Tanifood Tay Ninh agricultural processing plant project, with a starting price exceeding 430 billion dong.
The combined starting price for both assets this time is over 1,216 billion dong (excluding VAT and other transfer-related taxes, fees, and charges). This represents a 10% reduction from the 1,350 billion dong starting price VietinBank initially advertised in mid-March.
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Tanifood plant from above.
Lavifood Joint Stock Company, an agricultural processing firm, is identified as one of the businesses linked to Truong My Lan. Its assets are being recovered to facilitate the judgment enforcement in the Van Thinh Phat case.
The Tanifood fruit and vegetable processing plant, owned by Lavifood, spans 15 hectares and involved an investment of up to 1,780 billion dong. It was previously recognized as Vietnam's largest processing plant by capacity and among the top five facilities with the most advanced technology in the Asia-Pacific region.
By 2021, Truong My Lan acquired Lavifood and appointed her niece, Truong Hue Van, to manage and operate it.
Under Lan's direction, Truong Hue Van utilized Lavifood's legal entity to secure loans from SCB. These funds were intended for business operations and to repay debts owed to other banks.
Lan also instructed Van to establish "phantom" companies. These entities were used to create fictitious business plans, such as bogus agricultural product transactions with Lavifood, to generate fraudulent loan applications and withdraw funds from SCB for various other purposes.
In the Van Thinh Phat case, the Trial Panel recommended lifting the transaction freeze on this asset. VietinBank was tasked with coordinating with civil enforcement agencies to manage the asset and recover the debt. Any remaining value from the asset will be remitted to fulfill Truong My Lan's judgment enforcement obligations.
Quynh Trang
