SeABank Loan Saves Vietnam Airlines from Bankruptcy

Private lender SeABank has agreed to provide a zero-interest loan of VND2 trillion ($87.19 million) to Vietnam Airlines, in order to save the carrier from bankruptcy.

Part of the money will be disbursed this month, the national flag carrier stated.

This is 50 percent of a refinancing package worth VND4 trillion ($174 million) the government has approved to support Vietnam Airlines, which has VND20 trillion in debt due to the Covid-19 pandemic.

The remaining sum will come from two other lenders, SHB and MSB.

Vietnam Airlines and Vietjet Air have a combined fleet of nearly 200 modern aircraft, flying locally and internationally.

However, the ongoing fourth wave of COVID-19 starting from April 27 however, has frozen flights conducted by all carriers.

Apparently only nine aircraft of Vietnam Airlines’ fleet of 90 are now in service. The remainder sit idle at Noi Bai International Airport in Hanoi and Tan Son Nhat International Airport in HCM City.

Vietnam Airlines has also been approved to issue new shares to existing shareholders to raise VND8 trillion. This is set to occur in the last quarter.

Its HVN ticker on the Ho Chi Minh Stock Exchange has been put under warning since April 15 due to plummeting financial figures.