Vietnam Airlines stock trading restricted to afternoon session
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Trading in Vietnam Airlines’ stock will be restricted to the afternoon session from Nov. 3 aftermarket regulators deemed the carrier’s financial situation “risky”.
The main bourse Ho Chi Minh Stock Exchange will consider lifting the restriction depending on its evolving financial situation.
The airline reported a loss of VND8.46 trillion for the first half of this year.
Its accumulated losses as of Jun. 30 were VND17.81 trillion, or more than its charter capital then.
In reviewing the company’s half-yearly financial statement, auditors Deloitte Vietnam said it has doubts about the airline’s ability to “continue as a going concern.”
The company’s recovery is dependent on financial support from the government, rolling over of loans by banks and the Covid-19 pandemic, it said.
Last month Vietnam Airlines said it had issued nearly 800 million shares to increase its charter capital by VND8 trillion to VND22.14 trillion.
Questions & Answers
Q.What specifically caused the trading restriction on Vietnam Airlines stock?
What specifically caused the trading restriction on Vietnam Airlines stock?
Aftermarket regulators assessed Vietnam Airlines' financial situation as 'risky'. This assessment led to the decision to restrict stock trading to the afternoon session from November 3rd.
Q.What is the extent of Vietnam Airlines' financial difficulties?
What is the extent of Vietnam Airlines' financial difficulties?
The airline reported a loss of VND8.46 trillion for the first half of this year. Its accumulated losses reached VND17.81 trillion by June 30th, exceeding its charter capital at that time.
Q.Who expressed concerns about Vietnam Airlines' long-term viability?
Who expressed concerns about Vietnam Airlines' long-term viability?
Auditors Deloitte Vietnam, when reviewing the company’s half-yearly financial statement, expressed doubts about the airline’s ability to continue operating as a 'going concern'.
Q.What is needed for Vietnam Airlines to recover from its current financial state?
What is needed for Vietnam Airlines to recover from its current financial state?
The company's recovery is reliant on financial support from the government, banks rolling over existing loans, and developments concerning the Covid-19 pandemic.