HSBC, OCBC oppose Truong My Lan’s proposal to sell multi-million-dollar Hanoi building

By Hai Duyen March 29, 2024 | 12:58 am PT

Van Thinh Phat chairwoman Truong My Lan seen at the People's Court of Ho Chi Minh City. Photo by VnExpress/Tran Quynh

HSBC and OCBC Bank Singapore said Van Thinh Phat chairwoman Truong My Lan has mortgaged the Capital Place building for loans totaling US$230 million at banks, disqualifying her from selling the property.

At Truong My Lan's trial on Thursday, representatives from both banks, said Twin-Peaks, a subsidiary of property developer Van Thinh Phat, used the property to secure loans from them and these loans have not been fully paid yet, with a repayment deadline set for April 30.

"Truong My Lan does not have the right to sell this building as it was pledged as it serves as collateral for the loans obtained by Twin-Peaks," the HSBC representative said.

Previously, Lan, 68, proposed that her daughter Chu Duyet Phan sell the Capital Place building, situated at 29 Lieu Giai Street, Hanoi, to repay the money she allegedly misappropriated from SCB.

She told the court it was worth $1 billion, but her daughter recently informed the court that a buyer is paying only $360 million for the property. Phan said the building has been mortgaged at four different banks for $230 million for loans. After paying off the banks, the remaining amount will be handed to authorities to pay SCB.

The Capital Place building in Hanoi. Photo courtesy of the building

HSBC and OCBC representatives appealed to the court for permission to prioritize the use of the building to clear the existing loans.

They proposed that, after the building is sold and the loans are settled, any leftover funds should be transferred to authorities.

During the ongoing two-month trial, Lan faces charges of bribery, violating banking regulations and embezzlement, accused of misappropriating VND304 trillion ($12.31 billion) from SCB.

Prosecutors have recommended the death penalty for Lan for committing severe crimes over a long period and causing irrevocable consequences.

Between 2012 and 2022, she and her accomplices allegedly obtained 2,500 loans worth more than VND1 quadrillion ($44 billion), accounting for 93% of the bank’s total credit portfolio during the period.

She is accused of causing losses of VND498 trillion to the bank.

The trial commenced on March 5 and is scheduled to continue until April 29.