Businesses are racing to sell assets again, what is happening?

The most recent information that investors are interested in is the Board of Directors of Hoang Anh Gia Lai Group Joint Stock Company (HAGL, stock code: HAG) announcing a resolution on bond debt as well as approving the sale of assets to pay off debt.

Accordingly, HAGL will liquidate Hoang Anh Gia Lai Hotel in Pleiku City, Gia Lai Province to pay part of HAGL's 2016 bond debt at the Joint Stock Commercial Bank for Investment and Development of Vietnam ( BIDV ).

According to information recently announced by HAGL, as of September 30, 2023, the company estimates that the accumulated late payment of interest and principal of bonds coded HAGLBOND16.26 is up to VND 4,027.59 billion.

Before HAGL, LDG Investment Joint Stock Company (stock code LDG) also decided to restructure the company's assets and projects to pay off bond debts, bank debts, and ensure financial resources for project development.

The projects that LDG plans to restructure include Bai But - Son Tra Beach Resort (Da Nang) and the Apartment Complex project Lot C1 built in Binh An Ward, Di An City, Binh Duong and other assets and projects owned by LDG Investment Company. Notably, the Bai But - Son Tra project has a scale of up to 29 hectares, a total investment of more than VND 4,600 billion in a prime location and was once considered by LDG as one of the strategic projects.

Hoang Anh Gia Lai Hotel in Pleiku - Gia Lai

According to Mr. Nguyen Khanh Hung, Chairman of LDG Board of Directors, the real estate market is difficult, cooperation is not easy. Recently, the company's leaders also had to sell personal assets to keep the company.

According to the 2023 semi-annual audited financial report, LDG has overdue debt of more than VND 56 billion, including VND 22.55 billion in bond interest of bond lot LDGH2123002; VND 33.96 billion in principal and bank loan interest; and a number of debts that are due or about to be due.

Recently, Hai Phat Investment Joint Stock Company (stock code: HPX) announced the resale of the company's capital contribution in the Commercial Center Project 1 of the Tan Lap Islet Residential Area Project (Nha Trang City).

This complex project includes 3 commercial floors, 10 hotel floors and 2 apartment floors... In addition, Hai Phat also plans to wholesale projects in Lao Cai, Bac Giang, Quang Ninh to handle debt...

The latest reports from securities companies show that in the first half of 2023 and 2024, about VND 190,000 billion of real estate corporate bonds will mature.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), admitted that real estate businesses are still facing many difficulties. Only 23% of businesses can survive until the end of 2023 if there is no positive macroeconomic management policy for the industry. The use of high financial leverage, when facing difficulties, makes it more difficult, causing many businesses to be stressed and have to sell assets...

In a recent report on the real estate industry, VNDirect Securities Company assessed that the biggest difficulty of the market has passed, however, challenges remain and the market is expected to gradually warm up in the second half of 2024.

According to VNDirect, the liquidity problem of real estate businesses is still worrying as many businesses are still slow to pay interest and principal on bonds due to difficulties in refinancing channels, along with a sharp decline in sales due to market sentiment.

Source: https://nld.com.vn/kinh-te/doanh-nghiep-lai-dua-nhau-ban-tai-san-dieu-gi-dang-xay-ra-20231010150534797.htm