Crystal Bay's subsidiary increases capital through bond commitment

VNDirect Securities Corporation has just reported to the State Securities Commission and Hanoi Stock Exchange (HNX) about violations related to bond code CBGCB2124001 of Crystal Bay Corporation.  

VNDirect said that Crystal Bay violated condition 12.9 (a) when the subsidiary of this issuer increased capital contrary to the content that the issuer had committed and guaranteed without the approval of the bondholder representative.  

On April 25, 2025, VNDirect sent a dispatch requesting Crystal Bay to correct the above violation within 30 working days. If it is not corrected within the above time limit, it will be considered a violation event according to regulations.  

Bond lot CBGCB2124001 was issued by Crystal Bay JSC on November 5, 2021, with a total value of VND 450 billion, interest rate of 9.5%/year, term of 3 years and capital maturity on November 5, 2024. However, after 3 requests for bond extension, the maturity date was changed to May 5, 2025.  

When issued, these bonds are secured by third party assets, which are 78.2 million shares of Crystal Bay JSC owned by 11 individuals and/or any other assets used to supplement or replace the above assets. In addition, there is a commitment to guarantee payment for obligations related to the bonds by Mr. Nguyen Duc Chi, Chairman of the Board of Directors of Crystal Bay and a commitment to guarantee payment for obligations related to the bonds of Sunbay Ninh Thuan JSC. All of these bonds are 100% owned by VNDirect.  

In the November 2024 bond extension resolution of Crystal Bay, the issuer also approved the use of collateral assets of 31.11 million shares of Cam Ranh Riviera Resort JSC owned by Crystal Bay and the rights and interests arising from these shares to secure the entire bond payment obligation. This asset is pledged at VNDirect.  

For collateral assets being Riviera shares and Crystal Bay shares, the minimum collateral value is 170% of the bond value.

With the addition of collateral in the form of Riviera shares, the bond conditions are also supplemented with the following contents: The issuer commits by all means, as the parent company of Riviera, to ensure that Riviera will not incur any additional debt with a total value of over VND 50 billion, except for debts restructured at banks under credit contracts signed before November 5, 2024 and the credit financed by the bank for the purpose of mobilizing capital for the development of phase 3 - a 25-storey building at the Riviera Residences & Resort project. The issuer commits to only approve this capital mobilization plan if Riviera's capital mobilization conditions do not affect the value of Riviera shares and the rights of bondholders.  

At the same time, Riviera is not allowed to lend money/other assets of any value to related parties, not to guarantee or mortgage its assets to secure its obligations or those of any third party, and not to incur any bad debts or overdue debts...

However, according to information from Investment Electronic Newspaper - Baodautu.vn , in March 2025, Cam Ranh Riviera JSC completed the capital increase from 645 billion VND to 874 billion VND.  

Returning to the issuing organization, Crystal Bay JSC, the company's financial report shows that by the end of 2024, the company's equity will be VND1,766 billion. Total liabilities will be VND4,939 billion, equivalent to 2.8 times the equity, of which debt from bond issuance will be VND1,965 billion.  

In 2024, Crystal Bay will have a loss after tax of 109 billion VND (in 2023, the company made a profit of 101 billion VND), accordingly, the accumulated loss will appear with a value of 17.7 billion VND.  

In the audited financial report, the auditor noted the investment projects of Rocko Bay Resort and Sailing Ninh Chu Bay which were revoked. The auditor has not yet assessed and quantified the impact of these two revoked projects on the related items of the financial report.  

Source: https://baodautu.vn/cong-ty-con-cua-crystal-bay-tang-von-trai-cam-ket-trai-phieu-d274641.html