In November, a late-payment bond was announced from Crystal Bay JSC, 100% owned by VNDirect.
In November, a late-payment bond was announced from Crystal Bay JSC, 100% owned by VNDirect.
The corporate bond market overview report published by VIS Rating on the afternoon of December 5 said that in November, a late-payment bond was announced from Crystal Bay JSC, a company in the tourism and resort industry, with a total late-payment principal value of VND421 billion.
The issuer defaulted on principal payment on November 5, 2024. The bondholder, VNDirect, which owns 100% of the bond, subsequently agreed to extend the payment until November 30, 2024.
There is currently no payment notice for this bond. This bond is secured by 78.2 million shares of Crystal Bay JSC and VNDirect is also the consultant, underwriter and representative for the bondholder.
VIS Rating considers these stocks as collateral to be low liquidity because they are shares of unlisted companies. In addition, VIS Rating assesses that Crystal Bay will continue to have a high risk of late payment of principal/interest due to its weak credit profile with negative operating cash flow, high leverage and limited cash resources.
Before the VIS Rating report was published, in the stock trading session on December 5, VND shares of VNDirect Securities Corporation fell for the second consecutive session to below VND 12,500/share, with high liquidity.
The reason is that Trung Nam Construction Investment JSC, whose bonds VNDirect holds, announced its 2023 fiscal year business results with a consolidated loss after tax of up to VND 2,878 billion. As of December 31, 2023, Trung Nam's equity reached VND 24,290 billion, down VND 3,624 billion compared to the previous year. The debt-to-equity ratio increased by 2.68 times, equivalent to a debt of VND 65,097 billion, of which bond debt accounted for VND 18,218 billion.
At the end of the third quarter of 2024, VNDirect's bond portfolio was worth VND 13,100 billion, an increase of VND 3,000 billion compared to the end of 2023. VNDirect also recorded nearly VND 184 billion in bad debt value from the Trung Nam group, the company had to set aside a provision of more than VND 55 billion.
At the end of the trading session on December 5, the VND price recovered following the unexpected increase of the market and closed at 13,850 VND/share. This is still higher than the book value of VND shares.
Source: https://baodautu.vn/crystal-bay-cham-tra-421-ty-dong-trai-phieu-cho-vndirect-d231806.html
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