Lender NCB wants to sell 11% stake in Bamboo Airways pledged as collateral
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National Citizen Commercial Bank plans to seek shareholders’ permission this month to sell 203 million shares, equivalent to a 11% stake, of Bamboo Airways.
Property developer FLC pledged some of the shares as collateral for loans.
FLC and its disgraced former chairman, Trinh Van Quyet, who is in custody for alleged stock market manipulation, had also used Bamboo Airways shares for borrowing from OCB and Sacombank.
The carrier last month sought shareholders’ approval to increase its capital by VND9.57 trillion ($408.15 million) to deal with debts, but failed to get it.
It plans to convene another extraordinary general meeting this month to raise the issue again.
Questions & Answers
Q.What is the primary reason National Citizen Commercial Bank wants to sell its shares in Bamboo Airways?
What is the primary reason National Citizen Commercial Bank wants to sell its shares in Bamboo Airways?
National Citizen Commercial Bank aims to sell the 11% stake in Bamboo Airways because property developer FLC pledged these shares as collateral for loans. This sale is likely intended to recover funds from those loans.
Q.Which other banks have lent money to Bamboo Airways using its shares as collateral?
Which other banks have lent money to Bamboo Airways using its shares as collateral?
OCB and Sacombank have also provided loans for which Bamboo Airways shares were used as collateral. The disgraced former chairman of FLC, Trinh Van Quyet, and FLC itself used the shares for these borrowings.
Q.Has Bamboo Airways been successful in raising additional capital to manage its debts?
Has Bamboo Airways been successful in raising additional capital to manage its debts?
No, Bamboo Airways failed to get shareholder approval last month for its plan to increase capital by VND9.57 trillion ($408.15 million). The carrier intends to hold another extraordinary general meeting this month to re-address the issue.
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