Agribank to Auction Land in Chi Lang Stadium to Tighten Debt Collection
The Agribank branch in Lang Ha, Hanoi, has recently announced the auction of a debt owned by Thien Thanh Group, with the collateral being a plot of land in Chi Lang Stadium, Hai Chau District, Da Nang City.
According to the credit agreement signed on July 22, 2011, between Thien Thanh Group and Agribank, the estimated outstanding debt as of March 31, 2024, is over VND 350 billion, including both principal and accrued interest.
Interest will continue to be calculated from April 1, 2024, until Thien Thanh Group fully repays the principal and interest.
The collateral for this loan is the land use right of Phong Hiep Trading and Service Co., Ltd, located at plot number 138, map sheet number 3, with an area of over 5,000 square meters, at Lot 09 of the high-rise commercial and service complex area in Chi Lang Stadium. The starting price for this debt auction is over VND 350 billion.
Screenshot of Chi Lang Stadium in the heart of Da Nang City
Chi Lang Stadium covers an area of over 55,000 square meters and is located in the center of Da Nang City, surrounded by four main roads: Le Duan – Chi Lang – Ngo Gia Tu – Hung Vuong. In 2010, the City of Da Nang sold Chi Lang Stadium to Thien Thanh Group, owned by Mr. Pham Cong Danh, with the aim of developing a high-rise commercial and service complex.
In 2011, at the request of the investor, the Da Nang People’s Committee issued a decision approving the boundary plan to change the land use purpose. The city granted 10 land use certificates for this project.
Mr. Pham Cong Danh and Thien Thanh Group used these 10 land use certificates as collateral to borrow money from banks. Currently, Chi Lang Stadium is one of the assets pledged for enforcement of judgments.
Recently, at a press conference organized by the Da Nang People’s Committee, Mr. Vo Nguyen Chuong, Deputy Director of the Department of Natural Resources and Environment, stated that the city still aims to reclaim Chi Lang Stadium as proposed in the recommendation sent to the Prime Minister in 2018, and also requested the return of the VND 1,251 billion that Thien Thanh Group had paid into the state budget.
In 2019, under the direction of the Prime Minister, the General Department of Enforcement participated as the lead agency in organizing a working session on Da Nang’s proposal.
During the working session, the bank determined that Thien Thanh Group and Mr. Pham Cong Danh must repay a total of VND 8,408 billion, of which over VND 4,000 billion is for the land and VND 4,408 billion is the accrued interest. Due to conflicting economic interests, no general agreement was reached during the meeting.
To this day, Chi Lang Stadium still faces complex legal issues, and the obstacles have been recommended by Da Nang City to the Prime Minister’s delegation. The dossier is currently under review by the Politburo.