Faced with difficulties in arranging cash flow to repay debts when the market is unfavorable, in order to reduce financial pressure on the company, some businesses have been seeking to negotiate with guarantors, creditors, and debt swap agreements for stocks...
Issuing or exchanging shares to offset debt has been emerging and flourishing since last year with a series of businesses applying this plan such as Novaland , Hung Thinh, Hoang Quan Real Estate, Quoc Cuong Gia Lai... Up to now, many businesses continue to implement it.
Accordingly, the Board of Directors of Phat Dat Real Estate Development Corporation (HOSE: PDR) has just announced a resolution approving the temporary suspension of the plan to issue shares to pay dividends to shareholders according to the resolution of the 2024 Annual General Meeting of Shareholders held last April.
Phat Dat said the reason the company temporarily suspended the above plan was to prioritize the implementation of issuing shares to convert debt according to the plan approved at the 2024 Annual General Meeting of Shareholders, to ensure that the debt conversion is carried out on time as committed by the company to its partners.
Regarding debt conversion, Phat Dat plans to issue more than 34 million shares at VND20,000/share (1 share will be converted to VND20,000 debt) to convert a debt of USD30 million. This is a debt in USD, borrowed by Phat Dat from ACA Vietnam Real Estate III LP (Cayman Island) in March 2022, with a fixed interest rate of 8%/year and no collateral. The purpose of the loan is to invest in the Phuoc Hai project (Dat Do district, Ba Ria - Vung Tau province).
Another enterprise, Hoa Binh Construction Group (Code: HBC), previously successfully converted VND730.8 billion of debt into shares.
Accordingly, at the end of the issuance on June 28, Hoa Binh Construction successfully issued 73.08 million shares to convert 730.8 billion VND of debt, increasing the number of shares from 274.1 million shares to 347.2 million shares. The debt-converted shares will be restricted from transfer within 1 year from the date of the issuance end and the number of creditors converted is 99 creditors.
In the list of creditors converted into shares, it is worth noting that SMC Investment and Trading JSC (code SMC - HoSE floor) converted 104.79 billion VND into 10.48 million shares; Matec Construction Machinery JSC converted 88.73 billion VND into 8.87 million shares; Daiwa Investment and Development JSC converted 36 billion VND (total debt of 90.6 billion VND) into 3.6 million shares...
The issuance of shares to convert debt of Hoa Binh Construction was approved at the General Meeting on April 25, accordingly, the enterprise approved the plan to issue 74 million shares to convert 740 billion VND of debt.
Saigon Thuong Tin Real Estate JSC (TTC Land, code: SCR) previously also submitted a proposal to approve the plan to issue 34.9 million shares to convert debt, equivalent to the value of the converted debt of VND 349 billion (issuance price is VND 10,000/share) and the issued shares are restricted from transfer within 1 year.
TTC Land also announced the list of creditors. Of which, Thanh Thanh Cong Investment Joint Stock Company plans to convert VND289.3 billion in debt, raising its ownership to 22.7% of charter capital at TTC Land; Thanh Thanh Cong Industrial Park Joint Stock Company plans to convert VND54.29 billion in debt, raising its ownership to 1.26% of charter capital; and Thanh Thanh Nam Joint Stock Company will convert VND5.69 billion in debt, raising its ownership to 0.13% of charter capital at TTC Land.
Time to implement the debt swap stock issuance in 2024 to the first quarter of 2025.
Most recently, Construction and Trading Joint Stock Company 2 (UPCoM: ACS) has also just passed a resolution of the Board of Directors on the issuance of individual shares to convert debt. Accordingly, the company plans to issue 1.4 million shares with a total issuance value at par value of VND14 billion.
The expected issuance time is in the third quarter of 2024 - the second quarter of 2025 when the State Securities Commission announces the receipt of ACS's application for issuance of shares to convert debt.
Source: https://laodong.vn/kinh-doanh/xuat-hien-lan-song-hoan-doi-no-bang-co-phieu-1384584.ldo
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