(NLDO)- Novaland has received approval from its partners to extend the debt repayment plan for the 300 million USD international bond package until June 2027.
No Va Real Estate Investment Group Corporation (Novaland-NVL) has just announced the completion of negotiations with its partners on a $300 million bond lot listed and traded on Singapore's SGX until June 2027 instead of having to be paid on January 16, 2025.
Regarding the USD 300 million international convertible bond lot listed on the Singapore Exchange (SGX), the restructuring plan for this international bond package was agreed in July 2024, with the payment date being the bond maturity date in June 2027 or the early redemption (if any) in the future.
Novaland's Auqa City project (Dong Nai) is under construction.
However, in the context of the general difficulties of the market, Novaland's revenue has been significantly affected, causing difficulties in paying lenders as planned. Therefore, with this bond lot, despite great efforts, Novaland has not been able to arrange enough funds to complete the interest payment obligation on time on January 16, 2025.
Novaland has also proposed to bondholders a plan to extend interest payments to suit the current situation and Novaland's capabilities. In the spirit of openness and ensuring the principle of fair treatment for all investors, Novaland has been making efforts to implement many solutions to ensure the rights of bondholders, and is in the process of negotiating with bondholders of this international bond package.
"In the final stage of the restructuring process, Novaland needs more time to recover. The company hopes to receive understanding and sharing from bondholders to stabilize business operations and soon fulfill obligations to bondholders," Novaland's document affirmed.
Previously, Novaland also adjusted the price and conversion rate of this 300 million USD bond package. From January 5, 2025, the new conversion price is 36,000 VND/share, according to the fixed exchange rate at the time of conversion of 24,960 VND/USD, 10% lower than the initial conversion price of 40,000 VND/share. The new conversion rate is 149,038 shares/bond.
After two years of drastic restructuring, Novaland has achieved many clear changes. The Company's financial situation is currently recording positive points with the total outstanding debt payable to Novaland's lenders as of December 31, 2024 having decreased, with a settlement plan worth nearly VND 29,700 billion compared to December 31, 2022.
According to Novaland, in 2024, many Novaland projects, although having achieved important legal "removal", have not yet achieved the desired progress, affecting sales as well as product delivery to customers. As a result, the cash flow from the projects has not reached the set target, causing payments to bondholders to not be as planned.
"Novaland is focusing all resources to try to gradually overcome and speed up the progress of legal completion at key projects. In particular, Aqua City has completed the detailed planning 1/500 and sales licenses for subdivisions in accordance with the new planning, expected in July 2025; NovaWorld Phan Thiet completed decisions on land use fee payment from April 2025... From there, quickly continue to deploy construction activities, handover, and collection of product sales proceeds of the projects, which is a solid foundation for fulfilling obligations to all related parties" - Novaland emphasized.
Source: https://nld.com.vn/novaland-dam-phan-gian-no-goi-trai-phieu-quoc-te-300-trieu-usd-196250117162346185.htm
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