VietNamNet Bridge – Vietnam National Shipping Lines (Vinalines) plans to launch its initial public offering (IPO) at the end of quarter two but it might be delayed due to a slow restructuring of its debts and operations.

Debt negotiations between Vinalines and its lenders have been almost stopped by the latter due to successful capital divestment at some seaports under the management of the State-owned corporation.

Minister of Transport Dinh La Thang warned that creditors should not be too optimistic about a fast recovery of Vinalines, though the ministry is determined to equitize Vinalines this year.

At a meeting on IPO preparations for Vinalines in Hanoi yesterday, Vinalines general director Le Anh Son bemoaned a host of challenges for the debt restructuring process. After nearly two years of restructuring, Vinalines still owes VND8.74 trillion to banks and has failed to settle more as creditors have stopped debt settlement talks.

Creditors have refused to sell their debts owed by Vinalines at low prices to Debt and Asset Trading Corporation (DATC), which represents Vinalines to negotiate debt purchase deals, after they knew that Vinalines had successfully pulled capital out of seaports and many investors are eyeing stakes at the seaports managed by the corporation.

According to Son, banks might have expected too much from the recovery of Vinalines and the IPO could be affected if debt negotiations make little or no progress.

Besides, the business operations of Vinalines remain difficult. Transport charges have dropped significantly since the third quarter of last year while throughput at ports has not improved much.

In the logistics field, Vinalines cannot compete with many foreign and domestic enterprises, and the parent company cannot improve its cash flows to avert its loss-making situation.

Vinalines wants to divest all State capital at subsidiaries to pay debts but stakes of some ports put up for auction have found no buyers. Meanwhile, the corporation is not allowed to sell more shares at well-performing ports.

Therefore, it is not easy to settle Vinalines debts, Minister Thang said, adding Vinalines could not stand on its feet without support from creditors and that banks’ plans to recover the original value of debt would not work.

6,000 people to join Reunification Day parade

Around 6,000 people will join a grand parade in HCMC on April 30 to celebrate the 40th anniversary of Reunification Day (1975-2015), heard a press conference on Monday, April 13.

According to the organizers, the celebration is an important political and cultural event aimed to pay tribute to the older generations who fought for the country’s independence.

In HCMC, a meeting and a grand parade will start at 7 a.m. on the city’s Liberation Day, April 30, with about 6,000 people from the armed forces, schools and organizations taking part.

On the evening of the same day, more than 4,400 artists will perform at a special cultural program on the Le Duan Street section in front of the Reunification Palace.

According to Deputy Minister of Information and Communications Truong Minh Tuan, 597 reporters from 88 local and foreign news organizations have registered to cover the celebrations.

There will be fireworks displays at eight locations across HCMC at 10-10:15 p.m. on April 30.  

SGT