A tycoon sells Sapa hotel for 210 billion VND to pay off bond debt

Victoria Sapa Hotel - Photo: KS

BB Sunrise Power Joint Stock Company has just sent a report to the Hanoi Stock Exchange (HNX) regarding the handling of collateral assets to pay off bond debt.

The resolution approving the above policy, according to the announcement from BB Sunrise Power, has consulted bondholders and been approved.

The entire Victoria Sapa Hotel in Lao Cai province owned by Victoria Sapa Hotel Company Limited has been approved for mortgage release and deregistration of secured transactions.

After completing the mortgage release and deregistration procedures for the secured transaction, the issuer and the guarantor sign a contract to transfer the hotel to a third party.

BB Sunrise Power said the proceeds from the asset transfer will be used to pay principal and interest on bonds.

The transfer price, including VAT, was announced at about VND210 billion. However, the amount to pay for sales expenses as well as other taxes, fees, and charges was VND30 billion. Therefore, the remaining amount to pay the principal and interest of the bonds was VND180 billion.

According to information from HNX, BB Sunrise Power once issued a bond lot worth 500 billion VND, issued at the end of 2020, with a term of 5 years and an interest rate of 10.3%/year.

Recently, this company has repeatedly delayed bond payments with the reason that it has not been able to arrange sources for payment.

Regarding business performance, BB Sunrise Power reported continuous losses. In the first half of this year, the company reported a loss after tax of more than VND134 billion, while in the same period last year it lost VND248 billion.

In 2022, this business only made a profit of more than 221 million VND, and in 2021, it lost more than 67 billion VND.

Business is difficult, BB Sunrise Power's equity at the end of June this year was negative 221 billion VND.

Meanwhile, the debt to equity ratio is negative 22 times, equivalent to total debt at VND 4,885 billion, of which bond debt accounts for VND 477 billion.

BB Sunrise Power repeatedly delays bond payments

BB Sunrise Power is a company chaired by Mr. Vu Quang Bao. Mr. Bao is also known as the General Director of Bitexco Group, the younger brother of businessman Vu Quang Hoi.

According to information from HNX, BB Sunrise Power is a non-public enterprise, operating mainly in the field of electricity installation, distribution and transmission, established in 2019, headquartered in Hanoi.

Source: https://tuoitre.vn/mot-dai-gia-ban-khach-san-sapa-210-ti-dong-de-tra-no-trai-phieu-20240929142552752.htm