Shark Hung's Cen Land is late in paying bond interest

Century Real Estate Joint Stock Company (Cen Land - stock code: CRE), a company whose Vice Chairman of the Board of Directors is Mr. Pham Thanh Hung (shark Hung), has just announced unusual information about the delay in paying interest on CRE202001 bonds.

Cen Land's CRE202001 bond lot was issued on December 31, 2020, maturing on January 31, 2025. The issued volume is 4.5 million bonds and the outstanding volume is more than 3.5 million units, corresponding to the issuance value at par value of VND 450 billion, the remaining outstanding bond value at par value is VND 353.5 billion.

The planned payment date was January 2, but Cen Land was unable to make it. In a notice sent to the Hanoi Stock Exchange (HNX), as of January 3, Cen Land had to pay more than VND25.92 billion, but the company had only paid nearly VND502 million.

Shark Hung is Vice President of Cen Land (Photo: SharkTank).

Previously, Cen Land had fully paid the principal of more than VND96.45 billion due for this bond. The company said it planned to extend the payment period by a maximum of 3 months from January 2.

The Company confirms that it has paid the principal due and a portion of the interest due. The remaining interest due to a bondholder has not been paid because the Company is negotiating with this bondholder on a new payment schedule for the interest due.

Information in the notes to Cen Land's consolidated financial statements for the third quarter of 2023 shows that the company has outstanding long-term bonds due for payment of VND 450 billion.

This bond is issued to VNDirect Securities Company with the purpose of increasing the scale of operating capital for Cen Land, serving production and business activities, secondary investment in real estate projects, and lending to contribute capital to a number of projects.

On December 11, 2023, Cen Land passed a resolution to extend the bond code CRE202001 from the maturity date of December 31, 2023 to January 31, 2025 (13 months), the interest rate during the extension period is 12%/year. According to the resolution, at the old maturity date of December 31, 2023, Cen Land will fully pay the bondholders the interest payable on the bond at the maturity date, and at the same time pay 20% of the bond principal to the bondholders.

Source: https://dantri.com.vn/kinh-doanh/cen-land-cua-shark-hung-cham-tra-lai-trai-phieu-20240110192116579.htm