From the expectation of an international standard school…
On May 17, 2004, Thanh Hoa Provincial People's Committee issued Decision No. 1506/QD-UBND to allocate 40,387m2 of land in Dong Huong Commune (now Dong Huong Ward), Thanh Hoa City to Tay Do Company Limited to implement the Thanh Hoa Primary and Secondary School Project. This is the first large-scale private school project in Thanh Hoa with a total initial investment of over 200 billion VND, built in modern architecture, expected to be an international standard school in the region.
To implement the project, Tay Do Company Limited signed a credit contract with the Vietnam Development Bank Branch in Thanh Hoa (NHPTTH Branch) to borrow 144 billion VND in 2 contracts, contract No. 12/2008 is 74.5 billion VND; contract No. 131/2009 is 69.5 billion VND. The counterpart capital of Tay Do Company is 62.6 billion VND. The project is expected to be completed and put into use by the end of 2010.
The construction cooperation was being carried out as planned when the incident occurred. Tay Do Company fulfilled its commitment, fully disbursed the counterpart capital, paid full interest and had completed about 70% of the construction. However, after disbursing the full 74.5 billion VND under contract No. 12/2008, the NHPTTH Branch only disbursed an additional 3 billion VND under contract No. 131/2009 and then suddenly stopped disbursing.
The bank's suspension of disbursement caused Tay Dong Company to face financial difficulties, forcing it to stop the project even though it had completed nearly 70% of the project with hundreds of billions of VND spent. The project was also not put into use for its intended purpose because it could not be accepted.
The two sides have been in litigation since 2013. The NHPTTH Branch demanded to liquidate the project to recover capital, but Tay Do Company did not agree because it believed that the valuation was too low compared to the actual value spent.
The building with unique architecture in the heart of Thanh Hoa City has been abandoned for nearly 12 years. Restaurants, home appliance stores, and warehouses have opened up haphazardly in the campus. International-class classrooms have become storage rooms, fountains have become duck farms, and meeting rooms have become restrooms.
...to enforce the project
Since 2018, the Thanh Hoa Provincial Department of Enforcement of Civil Judgments has issued Decision No. 1 to enforce the judgment on the entire construction works of the Thanh Hoa Private Primary and Secondary School project of Tay Do Company Limited to pay the debt obligation to the Vietnam Development Bank - Thanh Hoa Branch with the amount of more than 109 billion VND. Because Tay Do Company Limited did not voluntarily enforce the judgment, the Thanh Hoa Provincial Department of Enforcement of Civil Judgments hired a unit with the function of appraising the value of the property (valuing more than 268 billion VND at the time of appraisal in April 2019) and conducting an auction.
After 15 price reductions and 19 auctions, many of which the auction organizer abruptly stopped the auction, causing frustration for investors, on March 7, 2024, the property was successfully auctioned online.
The winning bidder was Phuc Thinh General Service Trading Investment Company Limited, with a bid of more than VND88 billion. The Thanh Hoa Provincial THADS Department signed a sales contract and Phuc Thinh General Service Trading Investment Company Limited paid the full amount for the winning bid.
Thanh Hoa Province's Department of Execution of Judgments has issued many documents and worked directly with Tay Do Company Limited and 34 organizations, households and individuals to request the handover of the auctioned judgment enforcement assets to the auction winners in accordance with the law. However, Tay Do Company Limited and the above-mentioned related organizations and individuals did not agree and continued to send many petitions to the authorities.
Under the direction of the People's Committee of Thanh Hoa province, the provincial Department of Enforcement has proactively coordinated with the Provincial People's Procuracy, the Provincial Police and relevant units to review and supervise the implementation procedures and develop a plan for compulsory enforcement of judgments according to their authority.
It is expected that the enforcement period will be from December 16, 2024 until completion.
