A project developed by Novaland. The company said it is making efforts to restructure its debts and negotiate arrangements to ensure the interests of bondholders and other creditors are balanced. — Photo Courtesy from Novaland
Property developer Novaland has said it is making efforts to restructure its debts and negotiate arrangements to strike a balance between the interests of bondholders and other creditors.
It said after nearly a year of economic hardships the real estate market is showing signs of recovery.
Nevertheless, the tightening of lending policies and lingering market uncertainty remain significant hurdles, impacting the liquidity of companies, including its own, which has yet to stabilise as anticipated, it said.
In the event, its revenues and ability to raise new capital have been significantly affected, it admitted.
“Cash accounts for the company's projects are closely monitored by banks. Consequently, Novaland faces difficulties in meeting payment obligations to both domestic and international creditors as planned.”
Novaland, which has issued international convertible bonds worth US$297 million listed in Singapore, recently engaged in discussions with an ad hoc group of bondholders about liquidity challenges that have made it unable to meet the $7.8 million interest payment obligation in time.
It is negotiating with the group for a debt restructuring plan with support from advisory firms such as Deloitte, Sidley Austin LLP and YKVN.
It is currently undergoing comprehensive restructuring, and requires additional time for recovery, and so is seeking the co-operation of creditors to stabilise operations and fulfil financial obligations, the company said.
In recent times, with the Government's guidance and the determined efforts of local authorities and agencies, legal and investment obstacles faced by projects such as NovaWorld Phan Thiết, Aqua City, The Grand Manhattan, and others have gradually been resolved.
The company has also resumed work on its projects like Victoria Village, NovaWorld Hồ Tràm, Aqua City, NovaWorld Phan Thiết, and The Grand Manhattan with the support of financial partners such as TPBank, MBBank and VPBank.
NovaWorld Phan Thiết, a 1,000-hectare tourism and entertainment economic city, has become a popular tourist destination. Its golf course, Circus Land amusement park and Wonderland Water Park are open seven days a week now.
NovaWorld Phan Thiết is also progressively enhancing its resort, recreation and amusement facilities, and hopes to get five million visitors in 2024. — VNS