Fat Race asks to pay 17.625% interest per year for late bond payment

Dua Fat Group Corporation (UpCOM: DFF) recently announced its schedule for late bond payments to the Hanoi Stock Exchange (HNX).

Specifically, Dua Fat Group issued a batch of bonds code DFFH2123001 with a face value of VND 150 billion on September 1, 2021, scheduled to mature on March 1, 2023 with an interest rate of 11.75%/year.

Although the maturity date has passed, as of March 1, 2023, Dua Fat Group announced that there is still an outstanding bond debt of VND 89.52 billion that has not been paid to bondholders.

According to the Group's information, on March 2, 2023, the company and bondholders held a meeting and approved a bond payment schedule extending to July 14, 2023, 4 months later than the original plan.

Specifically, on March 15, 2023, interest of VND 605 million will be paid; on April 14, interest of VND 1.3 billion will be paid; on May 15, interest of VND 1.34 billion will be paid; on June 15, both principal and interest of VND 46.1 billion will be paid; and on July 14, the remaining principal and interest of VND 45.39 billion will be paid in full.

Notably, the business's exchange condition is that the interest rate calculated during the overdue period from March 2 to July 14 will reach 17.625%/year, a sharp increase compared to the initial interest rate of 11.75%/year.

With the successful negotiation, the company said that the bondholders have agreed not to handle the secured assets of the DFFH2123001 bond lot at maturity.

According to the resolution, at least 2 working days before the actual payment date, DFF is responsible for ensuring that the balance of the debt repayment reserve account is at least 100% of the total payment value on the actual payment date. On the actual payment date, DFF will transfer 100% of the payment amount to the bondholder's account.

However, if the time limit for remedy from March 2 to July 14 expires and Dua Fat Group fails to fully fulfill its obligation to pay 100% of the amount payable to the bondholder's account, the assets securing the above bond lot will be processed.

In addition, the Account Management and Payment Agent has the right to immediately freeze the entire Bond Account and the Bond Repayment Reserve Account if Dua Fat violates the payment schedule, with the purpose of paying the bond obligations to the bondholders as committed .

Dua Fat Group Joint Stock Company, formerly Dua Fat Foundation Joint Stock Company, was established on June 29, 2009, operating mainly in the construction sector, specializing in foundation treatment, especially bored pile drilling, soil treatment, and diaphragm walls.

The company has participated in the construction of many large projects such as Hoa Phat Steel Factory project in Quang Ngai , Hoa Phat Port in Quang Ngai , Saigon flood control dike, Long Son Cement Factory in Thanh Hoa ...

Source