Duc Long Gia Lai speaks out about paying off billion-dollar debt

On August 3, Mr. Nguyen Tuong Cot - General Director of Duc Long Gia Lai Group (address in Pleiku City, Gia Lai Province) informed that the unit has just filed a lawsuit against Lilama 45.3 Joint Stock Company to the People's Court of Quang Ngai City, Quang Ngai Province.

On February 8, 2023, the Gia Lai Provincial People's Court of Appeal issued a verdict on the dispute over the performance of a contract for the supply, manufacture and installation of hydraulic mechanical equipment between Lilama 45.3 Joint Stock Company (located in Quang Ngai City, Quang Ngai Province) and Duc Long Gia Lai Group.

The court ruled that Duc Long Gia Lai Group must pay Lilama 45.3 Joint Stock Company more than 17 billion VND. Of which, the principal debt is 14.7 billion VND and the late payment interest is 2.3 billion VND.

In July 2023, Lilama 45.3 Joint Stock Company submitted a request to open bankruptcy proceedings against Duc Long Gia Lai and was approved by the Provincial People's Court, which notified the acceptance of the application.

However, Duc Long Gia Lai appealed, and the High People's Court in Da Nang overturned the decision of the Gia Lai Provincial Court, affirming that the enterprise was not unable to pay its debts.

Since then, Duc Long Gia Lai has been operating normally and fulfilling its debt repayment obligations to Lilama 45.3 Joint Stock Company. Currently, the amount of debt repaid is 6 billion VND (accounting for 41% of the debt).

However, in June 2024, Lilama 45.3 Joint Stock Company continued to file a second request to open bankruptcy proceedings against Duc Long Gia Lai.

Regarding this issue, Duc Long Gia Lai Group believes that Lilama 45.3 Joint Stock Company's filing of a lawsuit and the competent authority's notification of acceptance of the lawsuit has caused damage to the company's brand and reputation.

Because when the decision to open bankruptcy proceedings was made and the information spread, the stock price and sentiment of shareholders of Duc Long Gia Lai Group were immediately affected.

Source: https://laodong.vn/kinh-doanh/duc-long-gia-lai-len-tieng-ve-viec-dang-tra-khoan-no-tien-ti-1375312.ldo