Crushed by debt, Vietnam's Trai Thien heads into bankruptcy

VIETNAM's air cargo carrier and shipping service provider Trai Thien appears to have gone out of business since making its debut in October 2009, as the office of the group's president in Ho Chi Minh City is closed, its ships are idle, there's been no aircraft movement and staff salaries have not been paid for five months, reports Vietnam Express/VietnamNetBridge.


It said that Trai Thien has six operational ships, but all the crews of the ships claim they have not been paid for the last five months.


It estimated that Trai Thien has to pay about VND200-220 million (US$9,569) per month to the crew of each ship, which would mean that Trai Thien owes VND1 billion to every ship.


Meanwhile, the group headquarters is reported to also be quiet with just three security guards there, Staff salaries do not appear to have been paid.


Nguyen Van Thang, deputy general director of Trai Thien Maritime Transport Development Company, said: "The president still cannot find the financial sources for the company. We have asked the president to return from the US to settle the problems. He has promised to return this month, but I am not sure."


VnExpress also quoted an official from the Civil Aviation Authority of Vietnam (CAAV) as saying that he received a call from Trai Thien's finance director in October, 2010, who said: "Trai Thien is trying to arrange money to pay to staff."


But Trai Thien has not provided air services yet, therefore, CAAV still cannot request the air carrier to report its financial situation, according to the official.


"If the air carrier does not exploit the market two years after the day of receiving the licence, CAAV will instruct them to make report and consider revoking the right to provide transport services," the unnamed official was quoted as saying.
(Source:http://www.schednet.com)