HCMC – The cash-strapped Hoa Binh Construction Group (HBC) has proposed swapping debt for real estate and other assets like construction equipment after its subcontractors issued an ultimatum.

Some engineering and electrical subcontractors pg HBC’s construction projects in the northern provinces of Hung Yen and Lao Cai and Hanoi City have written to HBC saying they would suspend work on the projects from March 15 due to HBC’s failure to settle debt, according to the Vietnam News Agency. They comprised Bach Viet, Hoang Anh, Manh Tien, Phu Duc, Long Giang, KDG Vietnam Electricity Mechanical JSC and ICD Vietnam. They wrote to the firm several times earlier asking it to pay overdue debt but got no reply. The payment delay has adversely affected their business operations as they have had to service their bank loans, pay for their employees and cover their operating costs.