How FLC plans to restructure

By Anh Tu   March 8, 2023 | 08:21 pm PT
How FLC plans to restructure
FLC Vinh Phuc Resort. Photo courtesy of the comapny
Conglomerate FLC plans to restructure after nearly a year of chaos by focusing on property development and resort operations and selling an unspecified stake in Bamboo Airways.

Tran Thi Huong, deputy standing CEO of the company, said at an extraordinary general meeting last week that the company would also seek to get its loans restructured to ensure it has operating funds.

This was the first shareholders' meeting the company has been able to convene since March last year when then chairman Trinh Van Quyet was arrested for stock manipulation.

Bamboo Airways, a project Quyet had spent a lot of energy on, will no longer be a priority and be sold partly or fully, but the management has yet to disclose any information about it.

The company has invested VND4.02 trillion ($169.55 million) in the airline and made a similar provision for a potential loss since it has yet to break even.

Chairman Le Ba Nguyen said last year that FLC’s strength has always been property, resorts and golf courses, and other investments have not been profitable.

So it would sell its subsidiaries and stakes in other companies to investors, many of whom have expressed interest, and focus on its core businesses, he added.

Huong said lossmaking property projects would be sold, and housing projects under development would be completed and handed over to customers. She said the company has 200 properties of various kinds across Vietnam.

They include four resorts in Quy Nhon, Thanh Hoa, Quang Ninh, and Vinh Phuc.

"We will focus on increasing occupancy rates at these resorts as the travel season approaches."

Its latest results, at the end of the third quarter last year, showed losses of VND1.9 trillion for the year.

It has yet to release last quarter results or audited results for the full year.

It has claimed finding an auditor has been difficult.

In the event, FLC has been delisted from the Ho Chi Minh Stock Exchange, and is only traded on the Unlisted Public Company Market.

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