Golden Hill Invest to buy back bonds and face financial challenges
In an unexpected move, Golden Hill Invest has announced its plan to repurchase bonds at face value (5,760 billion VND) and all accrued interest from January 15, 2024 (excluding) to March 20, 2024 (excluding), from the company’s arranged sources.
This bond was initially issued on April 15, 2021, with a term of 36 months until April 15, 2024. However, the company recently announced a shortened term of 1,070 days, with maturity on March 20, 2024.
Golden Hill Invest’s decision comes as a surprise as the company has been facing numerous challenges. Most recently, on January 31, 2024, the Director of the Customs Department for Investment Management decided to enforce customs procedures for Golden Hill’s export and import goods, due to the company’s tax debt exceeding 90 days from the tax deadline, as prescribed. The amount seized was over 1,289 billion VND.
With the above tax debt, Golden Hill Invest has attracted attention as the second-ranked company in terms of tax debt in the second quarter of 2023, according to the list of the Ho Chi Minh City Tax Department, as of October 31, 2023.
Golden Hill Invest faces enforcement due to nearly 1.3 trillion VND tax debt
In addition to the tax debt, the company’s business performance is also not promising. The after-tax profit in 2022 was negative at nearly 276 billion VND, 48 times higher than the previous year. The return on equity (ROE) was also severely negative at 11.39%.
At the end of 2022, the company had equity of 2,421 billion VND, a decrease of over 10% compared to the beginning of the year. The payable debt was nearly 12,347 billion VND, 5.1 times the equity, of which about 5,800 billion VND was the bond debt, corresponding to the value of the GHICB2124001 bond lot mentioned above.
The amount raised from this bond is believed to be for the investment in a high-rise project at 87 Cong Quynh Street, Nguyen Cu Trinh Ward, District 1, Ho Chi Minh City – a project with a total area of nearly 8,321 sqm that is developed by Golden Hill Invest. The project is located in a prime area but has not shown any signs of construction for a long time.
 The construction project in the prime area of HCMC but no signs of construction – Photo: Huy Khai
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What is the fate of the “prime area” project at 87 Cong Quynh, District 1
