LENDING & CREDIT | Cesar Tordesillas, Vietnam

ACB wins lawsuit to recover $1.3M from Indochina Airlines

The HCM City People’s Court has ordered Indochina Airlines to pay US 1.3 million dollars to the Asia Commercial Bank.

The sum of 1.3 million dollars include the principal of 1.19 million dollars and the interests that Indochina Airlines is obliged to pay regarding to the opening of letters of credit for the making payment with the airline’s foreign partners.

In case Indochina Airlines cannot pay the debt, Ha Hung Dung, the General Director of the airline has the responsibility of paying the debt for the airline.

ACB made a payment of 1.19 million to Komercni Banka A.S for Indochina Airlines. However, later, the airline cannot pay the debt to ACB, which has raised to a dispute between the two sides.

Indochina Airlines has been bogged down in the debts, while the Civil Aviation Authority of Vietnam CAAV has deprived the right for domestic air transportation of Indochina Airline, while the transport service license may also be revoked.

Indochina Airlines proposed CAAV to delay the deadline for revoking the license, saying that it needs some more time to restructure the enterprise and seek more capital. However, there has been no sign showing that the airline can arrange capital to resume its operation.

Thoi bao Kinh te Saigon has quoted an official from CAAV as saying that until November 3, the private airline still had not submitted the report about the flight resumption plan, though December is nearing.

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