FLCH2123003 bond lot is scheduled to mature on December 28, 2023, but FLC Group recently said it is still in the process of negotiating with bondholders to approve a plan to extend the principal value of VND 996 billion and interest of VND 59.8 billion.
FLC Group Joint Stock Company periodically announces information on the payment status, principal and interest of bond lot FLCH2123003.
This bond lot was issued by FLC on December 28, 2021 with a total value of VND 1,150 billion and matures on December 28, 2023. FLCH2123003 has a fixed interest rate of 12% per year and the interest payment period is every 6 months. However, FLC bought back nearly VND 153 billion before maturity, so the value of the outstanding bonds is VND 996.3 billion. This is also the total remaining outstanding bonds of FLC at present.
According to the latest update, the FLCH2123003 bond lot has passed its maturity date, but FLC said it is still in the process of negotiating with investors to approve the extension plan. On December 28, 2023, the company has only paid 100 million VND of the original bond value, while the principal amount to be paid is 996.4 billion VND and the interest to be paid is 59.8 billion VND.
About a week before the maturity of this bond, FLC proposed many options to extend the payment, but the bondholders did not agree.
Specifically, with option 1, FLC said it will continue to implement the FLC Hai Ninh 2 resort villa project (in Quang Binh) and use revenue from project exploitation and business to repay bond debt. The company affirmed that all proceeds from project exploitation will be transferred to the company's blocked account to prioritize payment to bondholders. FLC plans to complete legal procedures to put the project into operation from the second quarter of 2025.
With option 2, FLC proposes to find investors to transfer the project. Similar to option 1, the proceeds from the project sale will also be transferred to a blocked account and prioritized for bond repayment.
With option 3, FLC wants to use the project's real estate when it meets the conditions for signing a sales contract to offset the bond payment obligation. Finally, FLC proposes that in case the above 3 options are not approved, it should propose another option within 90 days from the time of synthesizing the bondholders' opinions.
Previously, in addition to repurchasing a portion worth nearly VND 153 billion of the FLCH2123003 bond lot, FLC repurchased the entire two FLCH2023001 and FLCH2124002 bond lots worth VND 400 billion and VND 430 billion, respectively.
Fulfilled debt obligations of 4,400 billion VND
At the extraordinary shareholders' meeting in mid-February, FLC's board of directors said that the two years 2022 - 2023 will be an extremely difficult and challenging period for the company as it has to go through many difficulties in its operations due to being directly affected by information as well as issues arising from the case of former senior leaders. Currently, FLC's total asset value is estimated at more than 21,000 billion VND. FLC has been approaching and researching many projects spanning 20 provinces and cities across the country. The company has paid about 800 billion VND to the state budget and fulfilled its debt obligations of about 4,400 billion VND.
After a strong restructuring process, the adjusted personnel structure reduced 60% of the regular staff, balanced the organizational structure and stabilized income for more than 3,500 employees, with total salaries and bonuses in 2023 reaching more than 300 billion VND. The FLC ecosystem currently has 14 subsidiaries (FLC owns 50% to 100% of charter capital) and one affiliated company.
This year, FLC affirms that it will continue to promote restructuring and reshaping core areas with three main pillars: real estate business, resort business and M&A projects to restructure loans and maintain business operations.
The plan set for this year for FLC's Real Estate Business segment is to achieve a turnover of VND1,187.2 billion to complete the construction of projects as committed to customers. The Group said it will restructure its assets by retaining good quality assets with high profitability while transferring or cooperating to invest and trade some assets to generate financial resources.
For the hotel and resort tourism sector, FLC aims to achieve revenue of VND1,213 billion this year and enough profit to maintain the apparatus as well as fulfill commitments to many stakeholders such as state agencies, customers, and banks.
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