Novaland Group (ticker NVL) announced plans to propose a stock issuance to swap debt at its upcoming shareholders’ meeting, targeting major stakeholders such as NovaGroup and Diamond Properties to address loans and bonds. This group, linked to Chairman Bùi Thành Nhơn, has supported Novaland in debt repayments during financial struggles. An agreement from 2022 to 2024 necessitated the sale of pledged shares for debt obligations. Currently, Novaland’s total debt has decreased to over 59 trillion VND. However, the company faces cash flow challenges and cannot settle due debts in the next three years. Although new stock issuance might dilute existing shareholders’ stakes, Novaland’s leadership pledges to recover and protect all investors’ interests.
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