HBC recovers debt of over $13 million from FLC
Hoà Bình Construction Group (HBC) collected all debts and deferred interest of more than VNĐ304 billion (US$13 million) from FLC Group nearly three years after the court's ruling.
Hoà Bình Construction Group (HBC) collected all debts and deferred interest of more than VNĐ304 billion (US$13 million) from FLC Group nearly three years after the court's ruling.
HBC approved the proposal for a private placement of shares to increase charter capital and swap debt at its second extraordinary general meeting of shareholders on Tuesday.
The issuance price is VNĐ12,000 per share, 40 per cent higher than its market price.
HBC shares closed Wednesday at VNĐ8,150 a share.
During the 2023-24 period, the company will issue 220 million shares to increase charter capital and 54 million shares to swap debt for suppliers, subcontractors, and manufacturers. Money from the issuances is used to supplement business capital and pay off existing debts.
Lê Viết Hải, Chairman of the Board of Directors of HBC, said that the company signed an agreement in principle with an international investment and development corporation for strategic cooperation and support for international business expansion in the near future.
Currently, it prioritises financial restructuring, issuing shares to increase capital to reduce debt repayment pressure by exchanging debt into shares for suppliers and subcontractors.
This solution benefits the company long-term, restores operations, strengthens beneficial relationships, and turns suppliers and subcontractors into strategic stockholders.
By October 16, nearly 100 suppliers and subcontractors had agreed to sign a debt-for-stock exchange agreement with a value equivalent to VNĐ400 billion. — VNS
