New details regarding the business performance and financial health of Hoan Cau Group reveal a large pool of bad debt of VND2.4 trillion (roughly US$105 million) that was just repossessed by VAMC (Vietnam Asset Management Company).
Hoan Cau Khanh Hoa company is the investor of Hoan Cau Hotel and Trade Center in Nha Trang province with investment capital of VND1,500 billion (about US$66 million).
The firm is more widely known as the investor in the Diamond Bay City project, which has total registered investment of US$4 billion. The massive project was expected to feature with over 15 resorts, over 15,000 hotel rooms, resort apartments, 4,000 ocean villas and other items such as golf courses, commercial centers, hospitals, schools, etc.
Hoan Cau has been known as a powerful corporation and had not revealed any signs of debt. Therefore, VAMC's repossession on two member companies of Hoan Cau Group has surprised investors.
However, problems related to Hoang Cau have been known for some time because its Diamond City project is not as good as expected.
The firm used 51,454 square meters of land in District 7 as for a loan at Sacombank with intention of developing a mixed-use property development worth US$660 million in investment capital.
This is a complex of commercial services and high-class apartments built in more than 14 hectares with total investment capital up to VND15,000 (roughly US$660 million).
However, this project was started last year but since then the construction has been idle.
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