Losing for 3 consecutive years, Hoang Cat Real Estate is late in paying principal and interest on due bonds

Losing for 3 consecutive years, Hoang Cat Real Estate is late in paying principal and interest on due bonds

Recording 3 consecutive years of losses, with each year losing more than the previous year, Hoang Cat Real Estate Group has yet to pay interest and principal on the due date of the 300 billion VND bond lot.

According to the deadline, on June 14, 2024, Hoang Cat Real Estate Group Joint Stock Company must pay more than 33 billion VND in interest and 300 billion VND in principal of the HCGCH2124001 bond lot to bondholders. However, in the information just announced, the company has not yet paid.

The reason given was “negotiating with bondholders”.

This bond lot with a face value of VND 300 billion was issued by Hoang Cat Real Estate Group on June 14, 2021, maturing on June 14, 2024 (term of 3 years), interest rate 11%/year. At each interest rate adjustment period (3 months/time), the interest rate is determined by the reference interest rate plus a margin of 3.9%/year but not lower than 11%/year.

Business results of Hoang Cat Real Estate Group from 2021 - 2023.

The bondholder who purchased the entire bond lot is an institutional investor. The units participating in the issuance arrangement are VNDirect Securities Joint Stock Company and Vietnam Prosperity Bank (VPBank).

The proceeds from the bond issuance were used by Hoang Cat Real Estate Group to buy back the capital contributions of capital contributors in Hoang Gia Phu Real Estate Investment and Trading Company Limited.

Hoang Gia Phu Company was established in 2019 with a charter capital of 410 billion VND. Address at No. 32, Street No. 4, Hiep Thanh 3 Residential Area, Hiep Thanh Ward, Thu Dau Mot City, Binh Duong Province.

This enterprise is also known as the investor of the An Phu Long Garden project, with a scale of 128 hectares in An Long commune, Phu Giao district, Binh Duong province. The project is divided into 2 implementation phases, in which phase 1 is 46 hectares, phase 2 is 82 hectares.

The collateral for the bond lot includes land use rights in An Long commune, Phu Giao district, Binh Duong province belonging to An Phu Long Garden project (after Hoang Gia Phu is granted a land use rights certificate) and the capital contribution of capital contributing members in Hoang Gia Phu.

Regarding business situation, in the three years from 2021 to 2023, Hoang Cat Real Estate Group recorded 3 consecutive years of losses from 2021 to 2023.

Specifically, in 2021, this enterprise lost 20 billion VND after tax, in 2022 this loss increased to 48 billion VND. And in 2023, it lost 62 billion VND.

Notably, at the end of 2023, Hoang Cat Real Estate Group's equity decreased from more than VND 613 billion in 2021 to only VND 430 billion.

As of December 31, 2023, Hoang Cat Real Estate's equity was VND 430 billion, down 12.6% compared to the beginning of the year (VND 492.6 billion).

The debt/equity ratio increased from 0.95 times (equivalent to VND 469 billion) at the beginning of the year to 1.42 times (equivalent to VND 612 billion) at the end of 2023.

Source: https://baodautu.vn/lo-3-nam-lien-dia-oc-hoang-cat-cham-thanh-toan-goc-va-lai-trai-phieu-den-han-d218147.html