The Hanoitimes - Fourteen out of 24 creditors voted on filing Bong Mieu’s bankruptcy process.
Vietnam’s leading gold mining company Bong Mieu, located in the country’s South Central Coast Quang Nam province, went bankrupt due to a debt burden of over VND1 trillion (US$43.27 million).
Quang Nam People’s court on November 28 held a creditors’ meeting to decide the fate of Bong Mieu, whether to file for bankruptcy process, declare bankruptcy or resume operation. They later went for initiating of bankruptcy process with the endorsement of 14 out of 24 creditors.
As of November 2017, Bong Mieu’s total asset value reached over VND302 billion (US$13.05 million), and its payables of VND1.2 trillion (US$51.87 million).
The company’s asset valuation was reported at VND34.8 billion (US$1.5 million), of which collateral assets were VND25.4 billion (US$1.09 million) and non-collateral assets VND9.4 billion (US$406,343).
However, Bong Mieu assets are specialized for mining and attached to the gold mine, so the asset value could only be maintained by keeping exploiting gold, instead of liquidizing.
Bong Mieu is a subsidiary of New Zealand-based Besra Gold Inc, which were granted exploration license in Vietnam until March 2016.
The company kept on operating even when the license expired, and only ceased operation per the local authority’s order.
In May 2017, Quang Nam’s authority ordered to close the gold mine.