According to the Hanoi Stock Exchange (HNX), VPBank Securities Joint Stock Company (VPBankS) has just announced a report on the violations of the issuer, Thanh Thanh Cong Investment Joint Stock Company, related to the conditions of commitment to bondholders for the two bond lots TTCCH2428001 and TTCCH2428002.
Accordingly, during the compliance monitoring process as a representative of bondholders of two bond lots TTCCH2428001 and TTCCH2428002, issued by Thanh Thanh Cong Investment Joint Stock Company (TTCC) on September 20, 2024 and October 17, 2024, VPBankS recorded violations that may affect the rights of bondholders.
Specifically, according to the 2024 audited separate financial statements of Thanh Thanh Cong Investment JSC that VPBankS had access to, the ratio of total liabilities and commitments to third parties/Equity of TTCC exceeded 2 times, specifically at 2.55 times.
According to the terms of issuance, Thanh Thanh Cong Investment JSC commits to maintain and determine the ratio of total liabilities and obligations committed to third parties/TTCC's equity not exceeding 2 times based on the most recent audited or reviewed separate financial statements.
VPBankS has sent an official dispatch to Thanh Thanh Cong Investment JSC requesting an explanation of the violation ratio between total liabilities and obligations committed to third parties/Equity of bonds TTCCH2428001 and TTCCH2428002.
On April 9, Thanh Thanh Cong Investment JSC sent a dispatch to VPBankS explaining its failure to comply with this ratio, due to differences in understanding between Thanh Thanh Cong Investment JSC and VPBankS.
Thanh Thanh Cong Investment JSC plans to seek opinions from the Bondholders' Representatives and/or bondholders about increasing this ratio to 2.6 times.
Why do businesses violate their commitments?
Thanh Thanh Cong Investment is a core unit in the TTC Group ecosystem related to the family of Mr. Dang Van Thanh and Ms. Huynh Bich Ngoc.
Thanh Thanh Cong Investment Joint Stock Company is currently led by Ms. Huynh Bich Ngoc as General Director and legal representative. Previously, the position of Chairman of the Board of Directors and legal representative was held by Ms. Dang Huynh Uc My - daughter of Mr. Dang Van Thanh and Ms. Huynh Bich Ngoc. Ms. My is currently the Chairman of the Board of Directors of Thanh Thanh Cong - Bien Hoa Joint Stock Company (TTC AgriS, code SBT).
In early 2025, Thanh Thanh Cong Investment became a major shareholder of TTC AgriS with a 26.7% stake. At the same time, this enterprise also owns 15.8% of Gia Lai Electricity Joint Stock Company (code GEG) - an energy company in the TTC Group ecosystem.
As of April 15, there is no financial report of Thanh Thanh Cong Investment for 2024 on HNX.
Information on the 2024 audited separate financial statements of Thanh Thanh Cong Investment JSC is accessed by VPBankS.
In the first 6 months of 2024, Thanh Thanh Cong Investment recorded a net profit of VND 51.5 billion, an increase of 17.8% over the same period. By mid-2024, the debt/equity ratio was 1.6 times, equivalent to nearly VND 6,109 billion in debt at the end of the second quarter of 2024; of which, the company's bond debt was more than VND 1,145 billion.
As of June 30, 2024, Thanh Thanh Cong Investment's equity increased slightly from nearly VND 3,776 billion in the previous period to VND 3,818 billion.
According to information on HNX, in 2024, Thanh Thanh Cong Investment successfully issued 2 bond lots, including TTCCH2428001 worth 200 billion VND on September 20 and TTCCH2428002 worth 150 billion VND on October 17. Both bond lots have a term of 4 years, maturing in 2028 with an interest rate of 10.85%/year.
In addition to the above 2 bond lots, Thanh Thanh Cong Investment also has 5 other bond lots in circulation, with maturity dates from 2025-2029.
On October 8, 2024, Thanh Thanh Cong Investment will finalize the bond lot code TTCCH2124003 with an issuance value of 300 billion VND.
Thus, it can be seen that Thanh Thanh Cong Investment has issued 2 more bond lots TTCCH2428001 and TTCCH2428002 with a total value of 350 billion VND around the time lot TTCCH2124003 (300 billion VND) matures.
Increased borrowing in the second half of 2024 could cause TTCC's total debt/equity ratio to exceed the 2x threshold by the end of 2024.
Thang Loi Tourism Joint Stock Company officially "erased its name" to join the "empire" of Dang Van Thanh.
Source: https://vietnamnet.vn/vi-pham-cam-ket-voi-trai-chu-dieu-gi-xay-ra-voi-de-che-thanh-thanh-cong-2391620.html
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