No Va Land bondholders threaten acceleration of 2026 convertibles if restructuring talks fail

By Marisa Wong

Los Angeles, Sept. 25 – No Va Land Investment Group Corp. is being urged to engage with an ad hoc group of international convertible bondholders to negotiate a restructuring agreement in good faith in order to avoid acceleration of the debt, according to a Monday press release put out by Camarco on behalf of the ad hoc group.

The ad hoc group is a group of funds managed by international institutional investors with a combined assets under management in excess of $15 billion, holding over 75% of the company’s $300 million convertible bonds due 2026.

The trustee to No Va Land’s convertible bonds, Bank of New York Mellon, has already issued multiple event of default notices, most recently related to a missed coupon payment on the bonds due July 16, 2023.

The ad hoc group of bondholders is in a position to direct an acceleration notice at short notice if No Va Land fails to negotiate restructuring in good faith.

“An acceleration notice would have a spiraling effect on other stakeholders; if unsecured creditors accelerate the debt to step to the front of the line, more senior (secured) creditors will likely accelerate, derailing the entire restructuring process underway with onshore creditors, risking bankruptcy. Furthermore, equity could be zeroed out, ceding control of the company to creditors,” Camarco said in the press release.

“Despite a process to negotiate a consensual restructuring in the wake of a forbearance agreement having been attempted, the board of No Va Land has refused to engage with the group in good faith,” Camarco added.

“The case has implications for other Vietnamese conglomerates with debt trading at stressed levels and refinancing concerns,” Camarco further commented.

The ad hoc group then expressed its strong concerns about the prioritization of onshore creditors over international investors.

A bondholder was quoted in the release, “As long term and significant investors in Vietnam, we urge the board of No Va Land to engage with us to reach a consensual agreement, rather than refusing to countenance serious negotiations. This is for the good of the company, its stakeholders and Vietnam’s standing among international investors.

“No Va Land’s proposal further erodes our confidence in the process, forcing us to consider an acceleration notice which would negatively impact creditors and likely wipe out equity. By negotiating with onshore investors while blatantly sidelining international investors, No Va Land is projecting the message that global investors will not be supported but overlooked in a default, which is not conducive to encouraging the FDI Vietnam needs to capitalise on the growing China + 1 investment strategy,” the bondholder concluded.

No Va Land is a Vietnamese developer active in residential property and luxury resorts.

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