Vinashin restructuring approved

The state-owned company currently has 234 subsidiary companies but the restructuring will mean reducing the number to just eight with the loss of 14,000 jobs.

Vietnam’s Ministry of Transport has yet to confirm a date that the transfer will take place, but SBIC has been granted a business certificate.

SBIC’s eight subsidiaries will include Pha Rung Shipbuilding Company, Bach Dang Shipyard, Ha Long Shipyard, Thinh Long Shipyard, Cam Ranh Shipyard, Sai Gon Shipbuilding and Maritime Industry Company and Song Cam Shipbuilding JSC.

Vinashin fell into insolvency after incurring debts of more than US$600m. After months of speculation, the Vietnamese government announced last month that it would guarantee the company’s rollover bonds.

The bonds are listed in Singapore and are due to mature in 2025 at an interest rate of 1% per year. They are also reportedly under control of the US Securities Law to protect American investors.

The group failed to operate as an economic group after struggling to deliver its newbuilding contracts. It was set up as a cooperative in July this year.