Lộc Trời Group (LTG) is facing a bad debt of over 6 trillion dong. To overcome its financial crisis, the group has established a restructuring committee to negotiate with 12 banks for debt extension and seek an additional 1.3 trillion dong in working capital to maintain operations. LTG has reached an agreement with MB for a loan of 250 billion dong and TPBank plans to lend 650 billion in August. However, the bad debt situation could impact the group’s business operations. Once profitable, Lộc Trời has fallen into losses due to the loss of a strategic partner and fluctuations in rice prices. The revenue target for 2024 is set at 4.2 trillion dong, the lowest since 2010, and this plan was not approved by shareholders. To remedy the situation, LTG needs to attract further investment, but a necessary audit report is still pending.
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