The Government Inspectorate recently issued a conclusion on the issuance of individual corporate bonds and the use of funds from bonds by 67 issuers, including the Novaland Group and its subsidiaries, from January 1, 2015 to June 30, 2023.
In response, Novaland said that as of June 30, 2023, the total outstanding bond debt was VND 34,878 billion. After the restructuring process, most of these bond packages have been fully paid off by the enterprise, with only a few packages still having outstanding debt.
The total outstanding debt of privately issued bonds as of September 30 this year is VND 19,559 billion. Thus, Novaland has fully paid off VND 15,319 billion (accounting for nearly 44% of the total outstanding debt as of June 30, 2023).
Regarding the 24 bond packages, the Government Inspectorate has recommended transferring information to the authorities. Novaland stated that it has paid and settled 15 bond packages with a total initial value of VND 7,000 billion (accounting for 57.7% of the total initial outstanding debt).
The Group also basically completed the restructuring and extended a bond package with an initial total value of VND 250 billion; maintained timely payment of 7 bond packages from legal revenue sources of the projects.
For the remaining overdue bond package (accounting for 8.2% of the total initial debt), Novaland said it has paid principal and interest to bondholders to reduce the debt from VND1,000 billion to VND833 billion and is continuing to handle it with many solutions agreed upon by bondholders.
Novaland responds regarding bond packages (Photo: NVL).
Regarding the content of the Inspectorate's conclusion related to the disclosure of information on the issuance of bond packages, Novaland affirmed that it always focuses on and makes efforts to comply with and strictly comply with legal regulations.
However, due to some objective and force majeure events that the company could not control, especially during the period of social distancing due to the Covid-19 pandemic, the process of disclosing bond information was missing some non-essential information and there were delays.
As soon as the objective causes could be overcome, Novaland made full and accurate information disclosure in accordance with the law to ensure the legitimate rights and interests of bondholders.
Regarding the content related to the responsibility of managing corporate bond capital, Novaland said it has used the money from bond issuance in accordance with the issuance purpose and approved issuance plan.
The Group has also fully transferred capital from bond issuance to the correct capital recipients identified in the bond issuance plan and performed capital management responsibilities in accordance with bond regulations.
Specifically, every quarter, every month and every year, Novaland still requires partners to reconcile debts according to signed business cooperation contracts, provide legal progress and business results of investment projects.
Regarding the signs of using issued capital to buy capital contributions where the seller's capital contribution is not the actual capital contribution as mentioned in the Inspector's conclusion, the group affirmed that it was not related to the seller's previous transactions.
At the time of the capital contribution transfer transaction, the seller has committed to Novaland the legality of the transferred capital contribution and the seller is the party recorded as the transferring shareholder at the company issuing the shares. At the same time, the seller is responsible for ensuring that this capital contribution is completely owned, solely and legally disposed of.
In addition, regarding issues related to collateral for bond packages, Novaland commits to comply with legal regulations as well as agreements with bondholders.
Novaland said it respectfully acknowledged the shortcomings in the private bond issuance activities as pointed out in the Inspectorate's conclusion and always made the highest efforts in developing solutions to overcome those shortcomings to properly fulfill its commitments to bondholders.
Source: https://dantri.com.vn/kinh-doanh/novaland-len-tieng-ve-cac-vi-pham-phat-hanh-trai-phieu-bi-thanh-tra-chi-ra-20251018061625725.htm
Comment (0)