Bong Sen Corporation's financial report for the first half of the year reveals a net loss of over 355.5 billion dong. This translates to an average daily loss of nearly 2 billion dong.

While this represents a 13% improvement compared to the same period last year, the company has consistently reported losses since 2021, the first year it disclosed financial information. The total accumulated loss as of the end of June is nearly 3,092 billion dong.

This poor business performance has eroded the company's equity, which has decreased by nearly 14% to around 4,539 billion dong. Meanwhile, liabilities have increased by 8.5% to over 9,076 billion dong.

Approximately 4,800 billion dong of the liabilities stem from bond debt. This bond issuance, arranged by Tan Viet Securities (TVSI) in 10/2021, initially offered a 10.5% annual interest rate, later increased to 15.75%, with interest paid quarterly. The bonds initially had a 5-year maturity, but after several extensions, the maturity date is now 10/2026.

Bong Sen initially issued these bonds to contribute to a joint venture with Vina Alliance Co., Ltd. for a project involving an office tower, a commercial and service center, and apartments at 152 Tran Phu Street. This project was subsequently audited and revoked.

The front of the Palace Saigon Hotel as seen from Nguyen Hue pedestrian street (District 1, Ho Chi Minh City). Photo: Bong Sen Corp

The front of the Palace Saigon Hotel as seen from Nguyen Hue pedestrian street (District 1, Ho Chi Minh City). Photo: Bong Sen Corp

In 11/2022, Bong Sen announced that it had requested a full refund from Vina Alliance but had lost contact with the company. Bong Sen stated that it would only repay bondholders if Vina Alliance returned the funds. According to Bong Sen, the company's accounts and assets secured at Saigon - SCB Bank were frozen, preventing any disbursements and leaving the company with no recourse.

During an extraordinary meeting in late 8/2023, Bong Sen announced it was liquidating assets to fulfill its obligations related to the aforementioned 4,800 billion dong bond issuance. These assets include shares in Daeha Company, the mortgage on Palace Saigon Hotel, Bong Sen Annex Hotel, Vietnam House Restaurant, and two other properties in District 1. The company stated that if these assets proved insufficient, it would liquidate other assets to settle all outstanding debts.

However, the delay in repaying the bond principal persists. During the first six months of the year, Bong Sen accrued nearly 2,230 billion dong in overdue interest owed to bondholders, citing frozen accounts as the reason.

Truong My Lan at the appellate court hearing in 12/2024. Photo: Quynh Tran

Truong My Lan at the appellate court hearing in 12/2024. Photo: Quynh Tran

Bong Sen Corporation, formerly a subsidiary of Saigon Tourist Corporation (Saigontourist), was equitized in 2005. The company owns prime real estate in Ho Chi Minh City's center, housing hotels such as Palace Saigon (Nguyen Hue Street), Bong Sen Saigon (Dong Khoi Street), and Bong Sen Annex (Hai Ba Trung Street). Additionally, the company owns restaurants including Vietnam House, Lemongrass, Calibre, Bier Garden, Buffet Ganh Bong Sen, and the Brodard bakery chain with 18 stores.

Bong Sen gained prominence with its acquisition of over 51% of Daeha Corporation, the developer of the Daeha Commercial Center - Daewoo Hotel complex (Ba Dinh, Hanoi). The company also acquired Saigon One Tower Corporation, the developer of the long-stalled Saigon One Tower, now known as IFC One Saigon.

Bong Sen is listed among 762 companies associated with Van Thinh Phat. Moreover, in the bond issuance where the company is currently in default, the two primary purchasers who subsequently issued the bonds to retail investors were Tan Viet Securities (TVSI) and Tan Thanh Long An Company, both linked to Truong My Lan's business network.

At a court hearing in mid-3/2024, Lan confirmed that Bong Sen is a family-owned business, holding a 93.6% stake in the Daewoo Hotel Hanoi. Lan offered to sell this asset to cover the damages in the case.

Tat Dat