The Hanoi Stock Exchange (HNX) has announced updates regarding the bond repayment status of No Va Thao Dien LLC, a subsidiary majority-owned (99.99%) by Novaland Group (stock code: NVL).
According to the schedule, August 15th marked the principal and interest payment deadline for the NTDCH2227001 bond issuance, totaling over VND 2 trillion. However, No Va Thao Dien has only managed to settle slightly more than VND 200 million through non-cash assets.
No Va Thao Dien LLC cited challenges in securing sufficient funds and ongoing negotiations with investors regarding the remaining debt settlement as reasons for the delay.
The NTDCH2227001 bond, issued on September 5, 2022, carries a face value of VND 2.3 trillion, a 5-year maturity, and semi-annual interest payments. Notably, the company failed to meet its interest payment obligation in March 2023.
No Va Thao Dien LLC is actively negotiating with investors to address the outstanding debt balance.
In a separate disclosure to HNX, No Va Thao Dien LLC highlighted several unusual developments related to the bond issuer. These include potential business suspension, revocation of business registration, or restructuring decisions. The company also acknowledged changes in previously disclosed information, impacting its debt servicing capacity, as well as amendments to bond terms and conditions.
Additionally, the company reported administrative penalties imposed by securities regulators and legal violations. No Va Thao Dien LLC also confirmed the mandatory early redemption of the NTDCH2227001 bond, valued at VND 2.3 trillion, as per TVSI Securities’ notice dated March 13, 2023.
The company disclosed the results of a bondholder vote conducted in March-May 2023 regarding repayment options. Unfortunately, no consensus was reached with bondholders.
Earlier in June, the company missed a VND 2.172 trillion principal and interest payment. In 2024, No Va Thao Dien LLC also deferred VND 45 billion and remains delinquent on approximately VND 2.183 trillion in principal and interest.
Established in 2008, No Va Thao Dien LLC operates in the real estate sector, specializing in property and land use rights trading.
In 2024, the company reported a net profit of over VND 14 billion, although accumulated losses exceeded VND 933 billion. As of year-end 2024, shareholders’ equity stood at VND 6.355 trillion, while total liabilities reached VND 12.773 trillion, a 5% year-over-year increase.
Another Novaland subsidiary, Unity Real Estate Investment LLC, faces a similar challenge. The company was scheduled to repay VND 208 billion in principal for the UNICH2124001 bond on October 14th but has only settled VND 34 billion to date, citing funding constraints for the remaining VND 174 billion.
Unity Real Estate Investment LLC is engaged in discussions with investors to repurchase the entire bond issuance, targeting completion by November 2025. The UNICH2124001 bond, issued on October 14, 2021, has a total face value of VND 416 billion.
The bond proceeds were earmarked for capital expansion and the acquisition of Binh An Tourism Company, thereby gaining control of the Binh Chau – Phuoc Buu luxury eco-resort project in Ba Ria – Vung Tau province.
Founded in September 2016 as Nova Hospitality JSC with an initial charter capital of VND 50 million, Unity Real Estate Investment LLC is now 99.98% owned by Novaland Group. Mr. Bui Dat Chuong, brother of Novaland Chairman Bui Thanh Nhon, serves as the company’s Chairman and legal representative.
