FLC finalizes recipient of more than 400 million Bamboo Airways shares

This information was announced by FLC Group Corporation at the end of May 8 - a few hours before Bamboo Airways Corporation held its second extraordinary general meeting of shareholders on the morning of May 9.

This meeting of Bamboo Airways aims to present to shareholders a plan to issue approximately 957 million additional shares, equivalent to an increase in capital of VND9,570 billion. Of which, 772 million shares, equivalent to VND7,720 billion, will be used to restructure loans and convert debts into shares according to the agreement between creditors and the company. This proposal at the first meeting in early April was not approved by the Bamboo Airways shareholders' meeting.

According to the resolution signed by FLC Chairman Le Ba Nguyen, the Board of Directors of FLC will approve the full text of the draft contract in principle on the transfer of Bamboo Airways (BAV) shares to Mr. Le Thai Sam. The Board of Directors of FLC also approved the draft agreement and attached appendices regarding Mr. Sam's non-refundable funding to FLC. This amount of money helps FLC fulfill its financial obligations due, and release the assets owned by the group that are being pledged or mortgaged.

Mr. Le Thai Sam (far right) at the time of his debut with the new Board of Directors of Bamboo Airways in August 2022. Photo: BAV

Along with that, the FLC Board of Directors agreed to fully and irrevocably authorize in all cases the shareholder rights of FLC Group at the Bamboo Airways general meeting of shareholders to Mr. Sam, corresponding to all BAV shares owned by FLC.

At FLC’s extraordinary meeting in March, Mr. Le Ba Nguyen announced that he would sell his shares in Bamboo Airways during the restructuring process. FLC invested VND4,015 billion in Bamboo Airways, equivalent to 400 million shares, or 21.7% of the airline’s charter capital.

After the incident of FLC's senior leaders, Mr. Sam was elected as a member of the Board of Directors of this enterprise in July last year. He was only introduced by FLC as "a person with deep understanding of the investment and business environment in Vietnam" and "has many cooperative relationships with investment funds, organizations, and large economic groups". By mid-August 2022, Mr. Sam continued to be elected as a member of the Board of Directors at Bamboo Airways.

In the latest financial report published by FLC - Q3.2022, the group recorded a loan of more than 620 billion VND from Mr. Sam with 4 loan contracts with a term of 12 months, interest rate of 7% per year. The above loans were made sporadically from April to June 2022.

According to the new resolution, FLC's Board of Directors approved the liquidation of the loan contract and debt settlement between the group and Mr. Le Thai Sam. In addition to Mr. Sam, FLC also agreed to liquidate the loan contract and debt settlement with Ms. Cao Ngoc Kim Ngan - who also lent money to FLC.

According to VnExpress