Hanoi: Vietnam's beleaguered state-run shipbuilding company does not have enough money to make a $60m loan payment next week, and has asked foreign creditors for more time to pay, state-run media reported.
Nguyen Ngoc Su, chair of the Vietnam Shipbuilding Industry Group, is quoted in the online newspaper VietnamNet as saying that he informed creditors on December 10 that it will be impossible for the company to make the first repayment of principal due December 20 on a $600m loan from a group of creditors led by Credit Suisse.
"If Vinashin is cornered to default or go bankrupt, creditors of the $600 million will not collect a penny,'' Su said. "Both sides will lose. That's reality, there's no alternative. Generally speaking, we are of the view that the banks should not use tough measures on Vinashin during this very difficult situation.''
The government has said the company, one of Vietnam's largest known as Vinashin, is responsible for paying its own debts.
Moody's Investors Service cut Vietnam's credit rating on Wednesday, citing an increase in financial stress that is partly due to the near collapse of state-owned shipbuilder Vinashin.
The ratings agency said it lowered the Vietnam government's foreign currency bond rating to B1 from Ba3 and kept the outlook as negative, meaning the rating could be cut again. [16/12/10]
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