Novaland has reached an agreement with a foreign partner on debt swap.

On February 24, Mr. Bui Thanh Nhon - Chairman of the Board of Directors of No Va Real Estate Investment Joint Stock Company ( Novaland ) - sent a letter to lenders, including domestic and foreign financial institutions.

Accordingly, Mr. Nhon announced information about reaching an agreement with Dallas Vietnam Gamma Ltd. on converting debt into equity capital. Specifically, this company will receive a portion of capital contribution and shares in two member companies of Novaland, Thanh Nhon Real Estate Investment Co., Ltd. and Mui Ne General Investment Joint Stock Company, in exchange for canceling a corresponding number of bonds and warrants that the company has issued to investors.

Novaland's Phan Thiet project

"Novaland has made every effort to apply all measures to maintain its reputation with customers, bondholders, lenders, contractors and suppliers. However, in the context that the cash accounts of Novaland's projects are temporarily locked at banks, Novaland cannot make payments as planned. In the context of force majeure and beyond the control of the company, we hope to receive support and companionship from all creditors to overcome the current difficulties" - Mr. Nhon shared in the letter.

Mr. Nhon added that the handling of domestically issued bond packages. Specifically, with lot NVLH2224005, the company is arranging funds to pay the interest due. With lot NVLH2123009, the company has fully paid the interest due and proposed options, including extending the bond principal payment period for a suitable period or swapping the bond principal with real estate products that the company is investing in and developing.

Regarding the implementation of additional collateral, the head of Novaland also said that the company has complied with the agreement with the lenders and has negotiated additional collateral for the lenders in the past. These additional collateral transactions are carried out on the basis of compliance with the provisions of the agreements between the parties.

Mr. Nhon also committed to taking synchronous action to restart projects, remove legal issues for projects, complete construction to hand over houses to customers, and at the same time structure to create new capital sources for the company's operations.

It is known that hundreds of bondholders have agreed to swap bonds with real estate products in the past when the company made the above proposals. In addition, the company also said it is trying to negotiate and reach agreements with lenders on debts.

Source: https://nld.com.vn/kinh-te/novaland-dat-thoa-thuan-voi-doi-tac-nuoc-ngoai-ve-hoan-doi-no-20230224174302618.htm