SBIC asks Hanoi for help

Hanoi: The Shipbuilding Industry Corporation (SBIC), formerly known as Vinashin, has asked Hanoi for a special mechanism to deal with debts and negative equities of its subsidiaries before equitisation in the next 20 months.

"Currently, the key challenge is that big negative equities are at a complete standstill during the debt restructuring processes. It is mandatory for companies to turn equities into a positive status before equitising," said SBIC's chairman Nguyen Ngoc Su.

SBIC expects the government to allow its subsidiaries to transfer debts to the parent company. Debt compensation will be provisionally made by revenues from initial public offerings (IPOs).

SBIC intends to privatise four one-member limited companies – Vinashin Corrugated Iron Company, Chan May Port, Ha Long, and Cam Ranh shipyards in 2014.

Five others slated to go public next year are Thinh Long, Sai Gon Shipbuilding and Marine Industry Company, Sai Gon Shipbuilding Industry Company, Bach Dang, and Pha Rung shipbuilding companies.

SBIC has $1bn of domestic debt and about $35m of foreign debts. At the end of 2009 the shipbuilder was weighed down with more than $4bn of debts. [14/04/14]

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