Hotel for sale in the center of Sa Pa
According to the Hanoi Stock Exchange (HNX), BB Sunrise Power JSC has just announced unusual information about the sale of collateral assets to pay for the bond lot BBSP.H.20.23.001. The resolution was issued after BB Sunrise Power consulted with bondholders and was approved by bondholders.
Victoria Sapa Hotel is owned by Victoria Sapa Hotel Company Limited and is the collateral for the above bonds.
BB Sunrise Power plans to release the mortgage and deregister the secured transaction to transfer this hotel to a third party. The transfer value of this hotel is expected to be VND210 billion. If the transaction is successful, after deducting expenses and taxes (about VND30 billion), the remaining VND180 billion will be used to pay the principal and interest of the bonds.
Victoria Sapa Hotel is mortgaged at Vietcombank Hanoi Branch.
BB Sunrise Power issued the above bond lot at the end of 2020 with a total value of VND500 billion, the initial term was 3 years, later extended to 5 years, interest rate 10.3%/year. Tan Viet Securities Joint Stock Company (TVSI) is the depository organization for the bond lot. BB Sunrise Power has repeatedly delayed the bond payment with the reason that it has not arranged the source for payment.
The BBSP.H.20.23.001 bond lot has been bought back for nearly 23 billion VND and still has more than 477 billion VND in circulation.
BB Sunrise Power was established in 2019, with a charter capital of VND500 billion. This is a subsidiary of BB Power Holdings, a member of BB Group. BB Group is a multi-industry company chaired by Mr. Vu Quang Bao. Mr. Bao is also the head of Bitexco Group and the younger brother of businessman Vu Quang Hoi.
BB Sunrise Power operates mainly in the field of energy, transmission and distribution of electricity. The company carries out a number of projects such as hydropower in Ha Giang, Kon Tum and solar and wind power in Ninh Thuan.
BB Sunrise Power has negative equity, many businesses in the BB Group- Bitexco ecosystem are facing difficulties
Despite operating in an attractive energy sector, BB Sunrise Power has been reporting continuous losses. The company lost more than VND134 billion in the first half of 2024, compared to a loss of VND248 billion in the same period last year. In 2022, the company made a profit of more than VND220 million, while in 2021, it lost VND67 billion.
By the end of June 2024, BB Sunrise Power recorded negative equity of nearly VND222 billion, but total liabilities amounted to about VND4,885 billion. Bond debt was about VND477 billion.
In 2023, BB Sunrise Power failed to pay more than VND 47 billion in interest and VND 500 billion in principal of the above bond lot 3 times and was approved by bondholders to extend the BBSP.H.20.23.001 bond lot for another 2 years, until December 22, 2025.
Also according to the agreement, bondholders agreed that BB Sunrise Power will have 2 periods to buy back 10% of the value of the bond lot in 2024 and 3 periods to buy back 80% of the remaining value in 2025. The bond lot interest rate also changed to 8%/year, applicable from March 22, 2023 to December 22, 2025.
Previously, at the end of August, BB Sunrise Power's parent company, BB Power Holdings, reported a loss of nearly VND185 billion in the first half of 2024. This company has also suffered continuous losses in previous years. In 2023, BB Power Holdings lost nearly VND740 billion. The loss in 2022 was nearly VND153 billion.
As of the end of June 2024, BB Power Holdings recorded a 22% decrease in assets compared to the same period last year, from VND 2,423 billion to nearly VND 1,890 billion. BB Power Holdings has a total debt of VND 6,955 billion. Bond debt is more than VND 310 billion.
Besides the businesses in Mr. Bao's BB Group ecosystem, some businesses in the Bitexco Group ecosystem of the Vu Quang Bao-Vu Quang Hoi brothers are also facing difficulties.
Bitexco has just transferred its capital contribution at Saigon Glory Company Limited - the investor of One Central HCM project (now renamed The Spirit of Saigon) - to Phuong Dong Hanoi Real Estate Company Limited (Phuong Dong Hanoi Real Estate). The Spirit of Saigon is a 6-star hotel project with an initial investment capital of 500 million USD.
Previously, Bitexco mortgaged its shares in Saigon Glory to the bank to secure the obligations of 10 bond packages from SGL-2020.01 to SGL-2020.10 issued by Saigon Glory, with a total face value of VND10,000 billion.
Phuong Dong Hanoi Real Estate is known as the investor of the luxury project Masteri West Heights, West of Hanoi, belonging to the Masterise Homes group. Masterise Homes has many major partners, including Techcombank of billionaire Ho Hung Anh.
Recently, many businesses in the real estate and energy sectors have encountered many difficulties, with a lot of debt and no solution. Novaland (NVL) was late in paying more than VND 1,000 billion in principal and interest on bonds in September. A group of shareholders related to Mr. Bui Thanh Nhon, Chairman of the Board of Directors, has recently continuously divested capital to help Novaland pay off its debt. The proportion of this group has continuously decreased, from 50-60% a few years ago to 36%.
According to FiinRatings, debt repayment pressure on issuers, especially real estate businesses, in 2024 and 2025 is still quite large despite having handled quite a lot in 2023. According to VIS Ratings, it is estimated that more than VND 200 trillion of corporate bonds will mature within the next year.
Source: https://vietnamnet.vn/dai-gia-nang-luong-se-ban-khach-san-hang-tram-ty-o-sapa-de-tra-no-2327066.html
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