On August 3, Mr. Nguyen Tuong Cot - General Director of Duc Long Gia Lai Group (address in Pleiku City, Gia Lai Province) informed that the unit had just submitted a lawsuit against Lilama 45.3 Joint Stock Company to the City People's Court. Quang Ngai, Quang Ngai province.
On February 8, 2023, the Court of Appeal of the People's Court of Gia Lai province issued a verdict on the dispute over the implementation of the contract to supply, manufacture and install hydraulic mechanical equipment between Lilama 45.3 Joint Stock Company (locality). only in Quang Ngai City, Quang Ngai Province) and Duc Long Gia Lai Group.
The court sentenced Duc Long Gia Lai Group to pay Lilama 45.3 Joint Stock Company an amount of more than 17 billion VND. Of which, principal debt is 14.7 billion VND, interest on late payment is 2.3 billion VND.
In July 2023, Lilama 45.3 Joint Stock Company submitted a request to open bankruptcy proceedings for Duc Long Gia Lai and was approved by the Provincial People's Court, announcing the acceptance of the application.
However, Duc Long Gia Lai appealed, and the High People's Court in Da Nang canceled the decision of the Gia Lai Provincial Court, affirming that the enterprise was not unable to pay its debts.
Since then, Duc Long Gia Lai has been operating normally in production and business and fulfilling debt repayment obligations for Lilama 45.3 Joint Stock Company. Currently, the amount of debt paid is 6 billion VND (accounting for 41% of the debt).
However, in June 2024, Lilama 45.3 Joint Stock Company continued to file a request to open bankruptcy procedures for the second time against Duc Long Gia Lai.
Regarding this issue, Duc Long Gia Lai Group believes that the fact that Lilama 45.3 Joint Stock Company filed a lawsuit and was notified by the authorities to accept the petition caused damage to the brand and reputation of the business.
Because when the decision to open bankruptcy procedures was made and the information spread, the stock price and psychology of Duc Long Gia Lai Group's shareholders were immediately affected.
