VNStockNews.com - Local pharmaceutical firm Vien Dong Pharma is facing the risk of shutting down after one of its creditors, ANZ, filed a bankruptcy petition against the struggling firm, local media reported.
The petition was approved by a court in Ho Chi Minh City on August 5. Vien Dong, however, did not make any announcement concerning the issue.
According to news website VnEconomy, the Ho Chi Minh Stock Exchange only learned about the bankruptcy filing petition from a statement issued by ANZ Wednesday last week.
The drug company was supposed to make the information public within 72 hours following the court decision, according to the exchange, where Vien Dong is listed.
Vien Dong has been struggling since its chairman Le Van Dung was arrested late last year for manipulating share prices. If found guilty, Dung would face up to seven years in prison.
The company started selling its assets in March to repay debts, news website VnExpress reported. According to a corporate report at the end of last year, the company’s debt was VND918 billion, eight times higher than its registered capital. Almost all of the debts were short-term loans.
Analysts said the Ho Chi Minh Stock Exchange should have been stricter with Vien Dong and suspended trading in shares of the company immediately. They said withholding information from shareholders is a serious violation that cannot be taken lightly.
Following the criticism, the exchange decided to delist the company and the last trading for Vien Dong is September 1.
Vien Dong (DVD) fell on Thursday, to VND3,600, compared to VND4,800 at the beginning of August.
