(Bao Dan Tri) – The legal representative of Hoa Binh Construction Group announced that the arbitration tribunal has issued a ruling requiring Thanh Do Company to pay an amount of 368 billion VND related to construction contracts from the 2016-2018 period.
On January 16, Hoa Binh Construction Group Joint Stock Company (stock code: HBC) sent a document to the State Securities Commission and the Ho Chi Minh City Stock Exchange regarding its legal victory against Thanh Do Investment, Development, and Construction Joint Stock Company in the Cocobay Da Nang project.
According to the document from ALB & Partners Law Firm, which signed a legal services contract with Hoa Binh Group, the firm handled and resolved the dispute case between Hoa Binh and Thanh Do concerning 12 construction contracts related to the Cocobay Da Nang project. These contracts were signed during the 2016-2018 period.
In July 2022, Hoa Binh’s legal representatives filed a lawsuit with the Ho Chi Minh City branch of the Vietnam International Arbitration Centre (VIAC) over disputes arising from these 12 contracts. According to ALB & Partners, in December 2022, the Arbitral Tribunal issued its ruling, accepting Hoa Bình Group’s claim and ordering Thanh Do to pay a total amount of nearly 368 billion VND, including principal debt, interest, legal fees, and arbitration fees.
This ruling is final and binding on both parties, taking effect from December 6, 2022. If Thanh Do fails to make the payment within 30 days from the effective date of the ruling, the company will be subject to additional interest payments to Hoa Binh Group for late payment. The interest rate ranges from 11.5% per year to 14.6% per year for the principal debt of over 242 billion VND and 10% per year for the remaining amount.
The Cocobay Da Nang project spans over 31 hectares, with an announced total investment of up to 11,000 billion VND. In 2019, this resort real estate project became embroiled in controversy when it declared that it could no longer fulfill its commitment to paying a minimum return of 12% per year to customers due to financial difficulties.
As for Hoa Binh Construction Group, this leading market construction contractor faced a high-profile dispute at the beginning of the new year concerning the position of Chairman of the Board of Directors.
Currently, Mr. Le Viet Hai continues to manage operations at Hoa Binh Construction Group from January 1st. Meanwhile, Mr. Nguyen Cong Phu, after publicly refuting claims that the resolution appointing him as Chairman of the Board of Directors on December 14, 2022, had been suspended, has yet to take any further action. The latest confirmed information is that Mr. Hai and Mr. Phu had a private meeting on January 10.
On the stock exchange, HBC shares are currently trading at 8,700 VND per share, corresponding to a market capitalization of over 2,400 billion VND for the construction company.
Source: https://dantri.com.vn/kinh-doanh/tap-doan-hoa-binh-tuyen-bo-thang-kien-chu-dau-tu-cocobay-gan-370-ty-dong-20230116185210499.htm
