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Thursday, May 6, 2021

Vietnam Airlines to hold extraordinary meeting to seek shareholders’ loans

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HCMC – National flag carrier Vietnam Airlines will hold an extraordinary shareholder meeting on December 29 to call on its shareholders to offer preferential loans so that the airlines can accelerate its recovery.

Shareholders of the air carrier comprise the Government, which owns over 86% of the airline; Japanese aviation company ANA Holdings, with 8.7%, and other organizations and individuals, the local media reported.

At the meeting, Vietnam Airlines will also seek the shareholders’ approval to issue more shares to existing stakeholders to increase its charter capital, elect new members for the firm’s director board and report its business performance in 2020.

In the January-September period of this year, Vietnam Airlines reported a loss of VND10.75 trillion.

To overcome the difficulties caused by Covid-19, the air carrier proposed a credit package worth VND12 trillion.

In addition, it proposed the Government provide a guarantee for its issuance of 10-year bonds valued at VND10 trillion to develop its fleet in the 2021-2025 period.

Late last month, the National Assembly approved the Government’s proposals to eliminate the difficulties facing Vietnam Airlines. Specifically, the lawmaking body asked the State Bank of Vietnam to direct credit institutions to offer low-interest loans to Vietnam Airlines.

Moreover, the airline was allowed to issue shares to its existing shareholders to raise its charter capital. The Government will buy the shares through the State Capital Investment Corporation.

As for the election of new board members, at the Vietnam Airlines’ shareholder meeting on August 20, the shareholders agreed to relieve Pham Ngoc Minh, Koji Shibata and Nguyen Xuan Minh from the board and elect Dang Ngoc Hoa as chairman of the board and Le Hong Ha and Tomoji Ishii as new board members.

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