In particular, the bondholder group agreed to the release of mortgage and the deregistration of secured transactions for the secured assets of the bond lot, including: the entire Victoria Sapa Hotel complex owned by Limited Liability One-Member Company Victoria Sapa Hotel (the owner); the added value invested by the owner attached to or including the construction, parts that are built, upgraded, or improved, purchased attached to or located at the hotel; the ownership and all other rights and interests of the owner related to the Victoria Sapa Hotel.
After the completion of the mortgage release and deregistration of secured transactions for Victoria Sapa Hotel, BB Sunrise Power and the guarantor will sign a contract to transfer the hotel to the transferee within 3 days from the date of completion of the procedure. The proceeds from the transfer will be used to pay the principal and interest of the BBSP.H.20.23.001 bond lot.
The transfer price, including VAT, is VND 210 billion; the amount used to pay for selling expenses, taxes, fees, and other incurred expenses is VND 30 billion. Accordingly, the remaining amount is used to pay the principal and interest of the bond lot, which is VND 180 billion.
It is known that the BBSP.H.20.23.001 lot is the only bond lot currently in circulation by BB Sunrise Power, with a value of VND 500 billion, issued on December 22, 2020, with a term of 5 years and an interest rate of 10.3%/year. The current circulation value is over VND 477 billion.
The context of BB Sunrise Power’s secured asset transfer is due to the Company’s inability to pay 3/4 of the interest payments of the bond lot in 2023, citing reasons for not being able to arrange funds. Specifically, the amount to be paid in 4 interest payments in 2023 is VND 62 billion, but BB Sunrise Power only paid nearly VND 15 billion in the first interest payment.
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Repayment status of principal and interest of the BBSP.H.20.23.001 bond lot in 2023
Source: HNX
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BB Sunrise Power’s business results are also not optimistic, with a post-tax loss of more than VND 134 billion in the first half of 2024 (compared to a loss of nearly VND 248 billion in the same period last year). As of June 30, 2024, total assets were recorded at over VND 5,100 billion, up nearly 8% from a year earlier. Liabilities were approximately VND 4,900 billion, almost unchanged. Notably, the Company had negative equity of nearly VND 222 billion at the end of June 2024.
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Business results of BB Sunrise Power in the first 6 months of the year
Source: HNX
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According to the bond issuance document, BB Sunrise Power was established in September 2019 and is headquartered in Hanoi. The main business activities include electricity transmission and distribution. The Company is a subsidiary of BB Power Holdings – a leading company in the energy sector, investing in many hydropower, wind power, and solar power projects.
