Novaland continues to delay principal and interest payments on bonds.

DNVN - Novaland Investment Group Joint Stock Company ( Novaland , stock code: NVL) has just announced unusual information regarding the delayed payment of principal and interest on bonds.

According to the announcement, Novaland is unable to make timely payments of the principal debt of VND 149 billion and interest exceeding VND 24 billion for bond issue NVLH2224006, with the planned payment date being September 16th. The total outstanding amount is over VND 173 billion.

Novaland stated that it is reviewing its financial situation to negotiate with bondholders who have not yet agreed to the bond extension plan, while also arranging funds to make overdue interest payments.

This is not the first time Novaland has faced difficulties in paying bond interest. On September 5th, the company was late in paying interest on 5 bond tranches totaling over 107 billion VND. These tranches include NVL2020-03-290, NVL2020-03-340, NVL2020-03-390, NVL2020-03-440, and NVL2020-03-470.

Novaland failed to make timely payments of the principal and interest of VND 173 billion for bond issue NVLH2224006, as scheduled by September 16th.

According to credit rating agency Vis Ratings, Novaland is one of the issuers that has defaulted on many bond issuances since 2023. In August 2024, the company had 8 bond issues maturing with a total value of up to VND 1,620 billion.

Previously, in May, Novaland also delayed interest payments on two bond issues, NVLH2232001 and NVLH2232002, totaling over 170 billion VND. The company cited insufficient funds as the reason for this delay.

Despite challenging financial conditions, Novaland's consolidated financial report for the second quarter of 2024 shows a net profit of VND 344.6 billion, a 131.5% increase compared to the same period last year when it incurred a loss of VND 1,094 billion. The group explained that this turnaround was mainly due to growth in financial revenue.

Recently, the Ho Chi Minh City Stock Exchange (HoSE) announced that NVL shares would be placed under warning status from September 23rd due to Novaland's failure to submit its audited semi-annual financial report for 2024 beyond the stipulated deadline.

According to Novaland, the first six months of 2024 were a period of strong restructuring for the group, with many positive changes in the financial situation, construction progress, and handover of housing projects. However, due to the large and complex volume of documents, the company needs more time to complete the review of financial statements.

With the pressures regarding bond repayments remaining unresolved, Novaland needs to take timely measures to ensure liquidity and maintain confidence from bondholders and investors.

Thu An

Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/novaland-tiep-tuc-cham-tra-goc-lai-trai-phieu/20240922041945602