'Broken' commitment to pay 10 lots of bonds worth 10,000 billion VND
Tan Viet Securities (TVSI) has just notified Saigon Glory bond investors about Saigon Glory Company Limited (Saigon Glory) not paying interest on 5 bond lots and the process of the collateral management organization handling these bond lots.
According to TVSI, as of August 28, this unit has not received any payment from Saigon Glory to fulfill its obligation to pay interest to bondholders.
Saigon Glory's 5 interest-bearing bonds with serial numbers from SGL-2020.06 to SGL.2020.10 were issued on August 28, 2020 and mature on August 26 and 28, 2025. The total value of these 5 bonds is VND 5,000 billion.
For 5 bond lots with serial numbers from SGL.2020.01 to SGL.2020.05 with a total value of VND 5,000 billion due before (June and July 2023), Saigon Glory also could not pay the principal.
Therefore, according to TVSI, according to regulations, 5 bond lots with code numbers from SGL.2020.06 to SGL.2020.10 will be declared mature and the issuer, Saigon Glory, must buy back within 10 working days.
The collateral management organization is Techcombank, which is carrying out the collateral processing process.
Returning to the above bond lots, from June to August 2020, Saigon Glory issued 10 bond lots with a total value of VND 10,000 billion. The purpose of issuance is to increase the scale of operations, restructure debt and develop investment projects, including The Spirit of Saigon project, District 1, Ho Chi Minh City.
The Spirit of Saigon is located in a prime location in the Ben Thanh Quadrangle with 4 frontages on Pham Ngu Lao, Pho Duc Chinh, Le Thi Hong Gam and Calmette streets. This project is built on a "golden land" of 8,500m2, with a scale of 2 towers of 48 and 55 floors.
The collateral for the above 10 bond lots includes the entire capital contribution at Saigon Glory of Bitexco Group LLC and the hotel and office tower (Tower A) to be formed in the future of The Spirit of Saigon project.
Before the maturity date of 5 bond lots with serial numbers from SGL.2020.01 to SGL.2020.05, Saigon Glory Company held a direct bondholder conference to request an extension of payment but was unsuccessful.
According to the business registration, Saigon Glory Company was established on June 23, 2018, with a charter capital of 7,000 billion VND. This is a company operating in the real estate business sector, 100% owned by Bitexco Group Company Limited.
Bondholders are 'sitting on hot coals'
Regarding the progress of handling collateral for 10 lots of Saigon Glory bonds, some bondholders said that according to the information disclosure and bond terms, the company issued the bonds to implement The Spirit of Saigon project.
However, the project has been suspended for a long time. Bondholders have questioned the company's use of the raised capital for project implementation.
A bondholder in Hanoi said she had two Saigon Glory bond purchase contracts signed with TVSI, with a total value of VND5.2 billion. Of which, the VND1.2 billion bond matures in July 2023 and the VND4 billion bond matures in 2025.
This bondholder said that in 2022 she received full and regular interest. After the bondholder meeting in June 2023, she did not receive any interest on the two bonds mentioned above.
“At the time of buying Saigon Glory bonds, the interest rate offered by TVSI was only about 2% higher than the interest rate on bank savings. Because I believed in the collateral, the bank guarantee, and TVSI’s commitment to buy back, I chose to buy these bonds,” this bondholder was upset.
According to some bondholders, the progress of handling collateral assets of 10 Saigon Glory bond lots is quite slow, making them feel like "sitting on hot coals".
Specifically, on September 20, Saigon Glory sent a document to Techcombank and TVSI regarding the coordination of handing over collateral assets.
Previously, Techcombank sent a document requesting Saigon Glory to prepare documents and files to serve the handover of collateral assets on the afternoon of September 20.
According to Saigon Glory, the company has handed over the originals of the list of files and documents of the collateral to Techcombank at the time of signing the mortgage contract. Therefore, the current handover is only to supplement the documents of The Spirit of Saigon project.
Saigon Glory believes that The Spirit of Saigon is a large project, going through many stages of development, so the project's documents, especially the technical construction documents, are numerous and stored in many different units. Therefore, the company needs time to collect, arrange and re-count them fully and appropriately according to requirements.
For the above reasons, Saigon Glory requests Techcombank to postpone the handover of collateral documents.
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