Xây dựng Hoà Bình’s Plan to Address Trillion-Dong Debt?

Công ty CP Tập đoàn Xây dựng Hòa Bình (Xây dựng Hoà Bình – HBC) has recently submitted a draft proposal to the State Securities Commission for its annual general meeting in the financial year 2023.

According to the proposal, the company plans to issue 274 million privately placed shares to increase its charter capital and exchange debt. The maximum total value of the additional issuance is estimated to be 3.14 trillion VND.

Out of this, the company intends to issue 200 million shares to raise capital, with a price of 12,000 VND per share. Additionally, 74 million shares will be used to exchange debt with suppliers and subcontractors, with the exchange price adjusted from 12,000 VND to 10,000 VND per share.

This move is aimed at resolving a significant debt burden faced by the company. In a previous extraordinary general meeting, the Board of Directors of Xây dựng Hoà Bình proposed the issuance of 54 million privately placed shares to exchange debt at a price of 12,000 VND per share. At that time, 99 suppliers and subcontractors agreed to the debt conversion agreement using Hòa Bình’s HBC shares, equivalent to a value of 400 billion VND.

The leadership of Xây dựng Hoà Bình considers the adjustment of the debt conversion share price to be appropriate given the market situation. It ensures fair benefits for suppliers and subcontractors participating in the debt exchange.

Xây dựng Hoà Bình plans to complete the documentation for the participating units involved in the debt exchange using HBC shares and submit it to the State Securities Commission by early May 2024.

The issuance is expected to take place between 2024 and 2025. The details will be finalized at the upcoming annual general meeting in the financial year 2023 scheduled for April 25.

In March, Xây dựng Hoà Bình held a conference for subcontractors and suppliers in 2024. The company’s leadership pledged to prioritize strategic partners, providing them with favorable conditions and exploring the best opportunities for collaboration to foster recovery and development.

For more information about Xây dựng Hoà Bình’s financial activities, visit Business Today.