What do we see after 2 years of Novaland's restructuring?

Novaland Group (stock code: NVL) is making efforts to recover and has seen increasingly clear changes in its business operations. After more than 24 months of drastic implementation of comprehensive restructuring, this enterprise has continuously recorded many positive results.

Short-term debt is "pulled back"

Novaland 's financial situation is currently recording many positive changes, having basically completed the restructuring of most of its loans and bond debts.

Comparing data shows that, as of December 31, 2024, the total outstanding debt payable to Novaland's lenders has decreased or has had a solution with a value of nearly VND 29,700 billion compared to December 31, 2022.

Many loan packages from banking partners and foreign loans have also completed restructuring, which helps Novaland reduce short-term financial pressure, creating favorable conditions for the group to recover soon.

Looking back at the difficult times when the independent auditors expressed their opinions on the group's going concern assumption, Novaland has demonstrated flexibility to generate enough cash flow to finance operations.

It can be seen that from the drastic restructuring of principal and interest debts when they are due, to the efforts to negotiate to receive additional credit sources from major banks such as MB Bank, VP Bank, TP Bank, MSB... with a total funding limit of 18,200 billion VND and is disbursing on schedule, ensuring capital flow to implement key projects.

Since the time when the real estate market has encountered many difficulties (2022) until now, Novaland has been implementing many measures at the same time to be able to fulfill its obligations.

In addition to efforts to arrange financial resources for payment, the restructuring measures that the Group has been implementing for over 2 years include: handling collateral assets to repay debts, paying debts with assets according to regulations, and extending the principal and interest payment period of loans...

At the same time, from 2023 to now, many suppliers, contractors, lenders and bondholders of Novaland have chosen to swap with real estate products. This is considered one of the solutions for restructuring.

Specifically: in September 2023, Novaland completed the debt-to-equity conversion in a subdivision of the Aqua City project; in July 2024, an agreement was reached to restructure the USD 300 million international convertible bond package listed on the Singapore Stock Exchange; outstanding bonds issued privately decreased by 16%; exchanged and reached consensus with bondholders of 21 bond lots issued since 2020, on that basis, Novaland found a partner to transfer assets and pay debts to bondholders as planned from January 2025, with a total value of VND 7,000 billion; extended more than VND 4,000 billion of retail bonds and bonds issued to the public.

Nearly 2,000 products will be delivered by Novaland to customers in 2023 and 2024. Photo: document.

Clearing legal procedures for key projects

For the restructuring to be successful, one of Novaland's key tasks is to focus maximum resources on completing 4 main project clusters in Ho Chi Minh City, Dong Nai, Ba Ria - Vung Tau and Phan Thiet.

After the strong direction of the Government and central and local agencies in removing legal obstacles, many Novaland projects have achieved important successes.

Notably, in November 2024, the approval of the Dong Nai Provincial People's Committee to partially adjust the 1/10,000 Master Plan of Bien Hoa City marked a decisive step in resolving the legal issues for the Aqua City project, which has been stuck for more than 2 years.

Recently, on January 23, 2025, the People's Committee of Dong Nai province officially approved the cost of local adjustment of the 1/5,000 planning of subdivision C4. This is a positive step towards completing the adjustment of the 1/5,000 planning of subdivision C4 expected in the first quarter of 2025; it is expected that in July 2025, Aqua City will complete the detailed planning of 1/500 and sales licenses for subdivisions in accordance with the new planning.

Also in November 2024, NovaWorld Phan Thiet was "untied" when the People's Committee of Binh Thuan province issued a decision to adjust the decision to lease the project's land, as a basis for resolving land financial obligations in this project. It is expected that NovaWorld Phan Thiet will complete the decisions to pay land use fees from April 2025.

At the same time, legal work and construction activities at key projects are being accelerated. Around mid-2023, almost all of Novaland's projects were suspended, but by mid-2024, 14/16 projects in the ongoing project clusters were resumed.

Furthermore, in 2024, Novaland delivered 1,422 products from 7 projects, including: Aqua City (accounting for more than ¼ of the total delivered products), NovaWorld Phan Thiet, NovaWorld Ho Tram, Sunrise Riverside, Lakeview City, Palm City, Saigon Royal. The total number of Novaland delivered products in 2024 increased by more than 153% compared to 2023 and was almost equivalent to the number of products delivered in 2022, the time before restructuring.

The work of handing over pink books to residents has also been accelerated with nearly 400 books from the Sunrise Riverside and Victoria Village projects (low-rise areas) in 2024. In 2025, Novaland plans to hand over pink books to more than 7,000 products at central urban real estate projects in Ho Chi Minh City.

Novaland's restructuring process is entering its final stage. Despite many pressures and difficulties, the results achieved over the past 24 months have shown the tireless efforts of the entire Novaland team. The signs of recovery are becoming clearer and clearer, promising stability and re-development of Novaland in the coming time.

Source: https://thoibaotaichinhvietnam.vn/thay-gi-sau-2-nam-tai-cau-truc-cua-novaland-169744.html