A property project developed by Novaland in Ba Ria – Vung Tau Province, southern Vietnam. Photo courtesy of the company
Property developer Novaland will not be able to pay the VND59 trillion (US$2.3 billion) debts it owes until the end of 2026, and is negotiating with creditors and bondholders.
The lingering legal hurdles plaguing many of its projects is the reason for its financial situation, it said recently.
More than half of the debt, VND32 trillion, is set to mature within the next 12 months.
This year Novaland has already defaulted on redemption of trillions of dong worth of bonds due to lack of funds.
It has informed its bondholders it will extend redemption deadlines by up to two years.
It also owes $300 million in international bonds it sold on the Singapore Stock Exchange.
It is in talks with bondholders to amend this year’s interest payment schedule.
Novaland anticipates losses of VND12-688 billion this year.
“The company will strive to fulfill all debt obligations to customers, investors, shareholders, bondholders, partners, and related parties between the end of 2026 and early 2027,” it said.
It is working to resolve legal issues delaying its projects to increase cash flows.
