On July 28, the VN-Index reached an all-time high of 1,557.42 points with liquidity nearly 2 billion USD. However, the shares of LDG Investment Joint Stock Company (LDG) tumbled down despite having 18 successive tranches. LDG is currently trading at 5,630 VND/share, having doubled in a month. LDG’s downturn follows the arrest of former Chairman Nguyen Khanh Hung over fraudulent activities in a residential project. Hung was sentenced to 16 months in prison and the company was ordered to reimburse affected customers. LDG is also facing bankruptcy procedures with cumulative losses exceeding 2 trillion VND. Despite the bleak outlook, Hung announced plans for restructuring and undertaking several projects, while the company’s financial situation remains dire with cumulative losses of 1.375 trillion VND and debts of 893 billion VND.
Leave a Reply