Hoang Anh Gia Lai is late in paying off 4,400 billion VND in bonds
Recently, Hoang Anh Gia Lai Joint Stock Company (Code HAG) has just announced unusual information about the payment of principal and interest of the HAGL.BOND16.26 bond lot. Specifically, Hoang Anh Gia Lai of Mr. Doan Nguyen Duc will have to pay 140 billion VND in interest of this bond lot periodically on June 30, 2024.
Unable to pay the 4,400 billion bond interest again, what is happening to Hoang Anh Gia Lai's (HAG) dream of "getting out of debt" by 2025?
However, Hoang Anh Gia Lai was unable to pay this interest. This is not the first time HAG has failed to pay the interest on the above bonds. As of June 30, 2024, Hoang Anh Gia Lai has delayed paying VND 3,349 billion in interest and VND 1,015 billion in principal. The total amount of interest and principal overdue is nearly VND 4,400 billion.
The reason for the delay in paying the bond interest was given by HAG because the company had not yet collected the full amount of debt from Hoang Anh Gia Lai International Agriculture JSC (HNG). HNG had not yet liquidated some unprofitable assets to get money to pay HAGL.
The sale of assets to repay debt is part of a three-party agreement between HAG, HNG and a large commercial bank.
Regarding the HAGLBOND16.26 bond lot, this is a 10-year bond lot, issued since 2016. A total of 6,596 bonds were issued with a face value of 1 billion VND each, equivalent to a total value of 6,596 billion VND. The bond lot has an interest rate of 9.7%/year with interest payment every 3 months. This is a non-convertible bond lot, without warrants, with collateral.
How is Hoang Anh Gia Lai's dream of "debt-free" by 2025?
At the recent 2024 Annual General Meeting of Shareholders, Chairman Doan Nguyen Duc shared about Hoang Anh Gia Lai's efforts to repay its loans. Accordingly, the model of growing bananas, durians and raising pigs is expected to help HAG erase accumulated losses in 2024, moving towards paying off all loans in 2025.
Regarding the asset structure of Hoang Anh Gia Lai, as of the end of the first quarter of 2024, the company has total assets of VND 21,170 billion. Of which, the amount of cash is only nearly VND 40 billion, accounting for a very small proportion of total assets.
Receivables are currently at VND7,657 billion while inventories have decreased to only VND804 billion. Most of the long-term assets are in fixed assets with VND5,903 billion and long-term unfinished construction costs with VND4,992 billion.
In the capital structure, HAG recorded up to 14,137 billion VND in liabilities. The amount of liabilities is twice as high as the owner's equity. In addition, the company's short-term debt is recorded at 4,450 billion VND, long-term debt is 3,366 billion VND.
This total debt alone is much higher than the equity. Meanwhile, the company is still recording an undistributed accumulated loss after tax of VND1,452 billion.
Source: https://www.congluan.vn/lai-cham-tra-lai-trai-phieu-4400-ty-dong-uoc-mo-dut-no-cua-hoang-anh-gia-lai-hag-dang-ra-sao-post302198.html
Comment (0)