Trinh Van Quyet's arrest: FLC's biggest creditor spoke up, investors rushed to sell their F shares but failed

Although the arrest of a key leader of the business is bad news, the operation of FLC is currently quite good.

On March 29, the Investigation Police Agency of the Ministry of Public Security issued a decision to prosecute the case, prosecute the accused and arrest Mr. Trinh Van Quyet (Chairman of the Board of Directors of FLC Group Joint Stock Company). Mr. Quyet was arrested for manipulating the stock market, according to Article 211 of the Penal Code.

The chairman of FLC is accused of causing serious damage to investors and affecting the operation of the Vietnamese stock market. Thanks to the "trick", Mr. Quyet earned nearly 1,700 billion VND after selling shares, benefiting more than 530 billion VND.

However, right after the incident, the stock market "wobbled" for many consecutive sessions, the State Securities Commission (SSC) canceled the transaction of all shares sold by Mr. Quyet. Investors who bought the shares (the lot that Mr. Quyet "sold under") were lucky to get a refund.

After the news of Mr. Quyet's arrest, the Vietnamese stock market opened the trading session on March 30 with the red color covering the first few minutes. The VN-Index at one time dropped deeply to only 1,490.29 points, however, the bottom-fishing demand was quickly activated and many blue-chips regained the green color so the index turned up to reach the level of 1,503.89. point.

On March 30, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) had official information surrounding FLC Group's (FLC Group) loans at this bank after the Chairman of the Board of Directors of FLC Group was arrested and detained for treatment. investigation service.

Some information said that Mr. Trinh Van Quyet's arrest will affect Sacombank because FLC Group is a customer with credit transactions at this bank. However, Sacombank's statement stated: "Sacombank affirms that FLC Group's loans are law-compliant and safe. Sacombank's credit granting activities to FLC Group's customers are carried out in accordance with legal regulations. Sacombank's internal laws and regulations. Loans are fully secured by assets".

According to Sacombank, in 2021, this bank has participated in financing FLC Group, including Bamboo Airways, to meet the capital needs for customers' business activities. Sacombank said that this loan is in line with the Government's policy on stimulating tourism demand and supporting airlines after the pandemic.

According to the consolidated financial statements of the fourth quarter of 2022, FLC Group owes Sacombank about VND 1,840 billion in loans. With this outstanding balance, Sacombank is the largest creditor of FLC by the end of 2021.

Up to now, FLC Group is still operating normally and fully and on time fulfilling its debt repayment obligations under the credit contract signed with Sacombank. This bank explained that, as a normal rule in credit granting activities for secured loans, in case there is a risk, Sacombank will proactively apply measures to handle secured assets. to comply with the law to recover debts and ensure the safety of the bank's operations.

In the afternoon of the same day, Orient Commercial Joint Stock Bank (OCB) also officially spoke about the loan of FLC Group at this bank. Accordingly, FLC's outstanding loan at OCB by the end of 2021 is VND 1,392 billion.

Mr. Nguyen Dinh Tung, General Director of OCB, said that FLC's loans at the bank are mainly investment loans for the project, in addition, there is a part of short-term working capital loan with Bamboo Airways, but not much. Regarding the loan mortgaged by shares of Bamboo Airways (BVA), Mr. Nguyen Dinh Tung added that the total value of real estate secured assets held by the bank is about more than 2,000 billion VND, larger than much more than FLC's loan at this bank.

Specifically, banks usually only disburse about 70% - 80% of the total value of collateral. Therefore, if there is a risk, the bank will be able to recover the debt by just handling the collateral.

According to OCB, the total amount of collateral in shares of BAV (Bamboo Airways) that this bank received to secure the loan is only about VND 100 billion, mainly to add additional collateral for the loan. mobility and increase corporate liability.

"Up to now, FLC has always paid debts on time, never had a bad debt. Although the company's key leader was arrested, it is bad news, but FLC's operation is currently quite good, in a difficult period. Other parts of FLC also operate normally, including Bamboo Airways," said Mr. Nguyen Dinh Tung.

As for Bamboo Airways' shares, OCB's leaders added that this is a good airline. In the context of the economy and the tourism and airline industry recovering, the airline's stock is not without value. Therefore, at this point, OCB does not intend to sell off mortgage stocks and continues to closely monitor to ensure capital safety for the bank.

The State Securities Commission recommends that investors calmly, analyze and fully recognize the macro factors and actual operations of enterprises to be cautious in investment decisions.

Regarding the macroeconomic situation, the report on socio-economic situation in the first quarter of 2022 of the General Statistics Office has just released showing that the gross domestic product (GDP) this quarter is estimated to increase by 5.03% compared to the previous quarter. with the same period last year. This figure is higher than the growth rate of 4.72% in the first quarter of 2021 and 3.66% in the first quarter of 2020.

The chairman of FLC Group can still answer the phone, only stating briefly: "I'm busy" Rosé09:06:04 29/03/2022Quyet's situation is of great public interest. From the night of March 27, there were rumors on social networks related to Trinh Van Quyet, Chairman of the Board of Directors of FLC Group Joint Stock Company, that he was detained to investigate some contents. related to business...