BB Sunrise Power sells Victoria Sapa hotel to repay bond debt

The value of this asset transfer is 210 billion VND. After deducting 30 billion VND in expenses, the remaining 180 billion VND will be used to pay the principal and interest of the bonds.

BB Sunrise Power Joint Stock Company - operating mainly in the field of electricity installation, repair and transmission and distribution has just sent an official dispatch to the Hanoi Stock Exchange regarding the adjustment of information on the method of handling part of the collateral assets and the method of payment of BBSP.H.20.23.001 bonds.

The secured assets to be handled are the entire Victoria Sa Pa hotel project ( Lao Cai ), land use rights certificate, house ownership rights and other assets attached to the land, ownership of all other rights and interests of Victoria Sapa related to the assets.

Accordingly, BB Sunrise requests approval for the release of mortgage and deregistration of secured transactions. The proceeds from the transfer (after deducting sales costs; taxes, fees, charges, etc.) will be used to pay the principal and interest of BBSP bonds. H.20.23.001.

Specifically, the transfer value including VAT is VND 210 billion, the amount used to pay sales costs and other taxes and fees is VND 30 billion. The remaining amount is used to pay the principal and interest of the bonds, which is VND 180 billion. The payment of principal and interest of the bonds will be made in accordance with the provisions of the Bondholders' Resolution No. 864/2024/NQ.NSHTP-BBSP dated May 6, 2024.

It is known that the BBSP.H.20.23.001 bond lot was issued by BB Sunrise Power on December 22, 2020 with a term of 3 years, worth 500 billion VND. In May 2024, BB Sunrise Power was approved by bondholders to extend the term of this bond lot to 5 years, changing the maturity date from December 22, 2023 to December 22, 2025. Along with that, the interest rate of the bond lot also changed to 8%/year, applicable from March 22, 2023 to December 22, 2025.

Since the beginning of 2024, BB Sunrise Power has bought back this bond lot 3 times before maturity, totaling more than 23 billion VND.

In the first half of 2024, BB Sunrise Power continued to report a loss after tax of more than VND 134 billion, a significant decrease compared to the loss of VND 248 billion in the same period. Due to continued losses, the company's equity at the end of the second quarter of 2024 was negative VND 222 billion.

The debt/equity ratio is negative 22.01 times, equivalent to total debt at VND 4,885 billion, of which outstanding bonds account for VND 477 billion.

Previously, BB Sunrise Power's parent company, BB Power Holdings, also reported a loss of nearly VND185 billion in the first half of 2024. In the period from 2021 to the first 6 months of 2024, the company lost a total of more than VND1,156 billion.

Source: https://baodautu.vn/bb-sunrise-power-ban-giai-chap-khach-san-victoria-sapa-de-tra-no-trai-phieu-d226077.html