High debt repayment pressure, many businesses request bond debt extension

Hoang Son 2 Energy Investment Joint Stock Company has just announced a bondholder resolution regarding the extension of the VND500 billion bond lot for 2 more years, and at the same time adjusting the payment schedule and bond interest rate.

Accordingly, Hoang Son 2 Energy has announced information according to Bondholder Resolution No. 1217/2024/NQ/NSHTP-HS2 dated July 1, 2024. Bond lot HS2.H.20.23.001 is extended for 2 more years, maturity date is March 25, 2025. Bond interest rate applied during the 2-year extension is 8%/year. Payment progress is divided into 3 periods, the first 2 periods are paid in 2024, the 3rd period is paid on March 25, 2025.

Regarding this bond lot, on July 5, 2024, Hoang Son 2 Energy bought back 39,769 billion VND ahead of schedule, bringing the remaining volume after buying back (at par value) of the HS2.H.20.23.001 bond lot to more than 464.23 billion VND.

Hoang Son 2 Energy's main business area is: Investing in businesses in the energy sector.

According to the 2023 financial statements, the company lost 77.4 billion VND, last year Hoang Son 2 Energy also recorded a loss of 66.7 billion VND. By the end of 2023, the company's equity was 38.6 billion VND, down 66.7% compared to the capital of 116 billion VND in 2022.

The debt/equity ratio is 14.55 times, equivalent to the company's debt at the end of 2023 at VND 561 billion, a sharp increase of 15% compared to 2022. Thus, Hoang Son 2 Energy's debt is 14.5 times higher than the company's equity.

Bond debt/equity ratio is 12.95 times, equivalent to bond debt at the end of 2023 at VND 499 billion, unchanged compared to 2022.

Similarly, Vinh Xuan Real Estate Company Limited also continuously announced amendments and supplements to the terms and conditions of the bonds with codes VINHXUAN2020-01, VINHXUAN2020-02, VINHXUAN2020-03. Accordingly, the bond codes are all extended for 1 more year, maturing in June and July 2025.

Vinh Xuan Real Estate continuously requests to extend the bond payment deadline in the context that the enterprise is facing great debt repayment pressure and continuous business losses. Vinh Xuan Real Estate's 2023 financial statements recorded a loss after tax of 19.4 billion VND, and in 2022 the company also reported a loss of 1.2 billion VND.

As of December 31, 2023, Vinh Xuan's equity reached VND 252.2 billion, down 7% compared to 2022. The debt/equity ratio was 4.23 times, corresponding to liabilities of VND 1,066 billion, up slightly by 1.3% compared to 2022.

Of which, the outstanding debt of the enterprise's bonds is at 1,000 billion VND, accounting for 93.8% of the debt structure. Notably, the total debt of Vinh Xuan Real Estate is 4.2 times higher than the enterprise's equity.

A real estate giant that has continuously made positive moves in debt restructuring and loan extension is Novaland Group, which recently approved a plan to restructure its $300 million convertible bond lot.

The principal balance (after interest) corresponding to the effective date of July 5 of the restructuring plan is 320.9 million USD. The payment term of this bond lot is extended to June 2027 or early redemption.

At the end of June, Novaland received approval from bondholders to extend 8/17 NVL2020 bond lots with a total issuance value of nearly VND 3,200 billion, changing the bond term to 60 months, i.e. maturity from June to August 2025. The Group's subsidiaries also reached similar positive agreements.

In the first week of July 2024 alone, 9 businesses announced late payments of principal and interest on bonds and changes in bond terms and conditions, mainly extending bond terms by 12-24 months.

Source: https://laodong.vn/kinh-doanh/ap-luc-tra-no-cao-loat-doanh-nghiep-xin-gia-han-no-trai-phieu-1366734.ldo