[REVISION HISTORY]

Novaland Group financial restructuring and debt management

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2026-10-19 10:08 UTC → 2026-10-28 05:23 UTC · added ~~removed~~

Novaland Group has undergone significant financial restructuring and asset divestment throughout 2026 to manage mounting debt obligations. In August, the group reported a 37.6% increase in revenue for the first six months of the year, driven in part by the divestment of its stake in Ngoi Nha Mega. However, subsidiaries including The Forest City and Ngan Hiep Real Estate were identified as having significant outstanding tax debts. By September, the company’s focus shifted toward a broader divestment plan to address a total principal debt of 72,911 billion VND. Novaland successfully sold four assets totaling 11,266 billion VND as part of a 15,617 billion VND divestment plan. Despite these sales, auditors from Moore AISC noted negative net cash flow from operating activities during the first half of 2026, raising doubts regarding the group’s ability to continue as a going concern. To address liquidity, Novaland approved a plan to issue approximately 800.7 million common shares to existing shareholders at 10,000 VND per share, aiming to raise nearly 8,007 billion VND. In mid-October, the company announced an extension for this offering, moving the registration and payment deadline from October 29 to November 26, 2026. The proceeds are earmarked for debt management, including paying the principal of 13 different bond series and settling obligations for Nova Saigon Royal Real Estate Investment Co., Ltd. and No Va Thao Dien Co., Ltd. In early October, Novaland officially denied rumors claiming the company is bankrupt, stating such claims are “inaccurate.” The group also approved a plan to convert 10 international bonds held by BNP Paribas Financial Markets into approximately 1.73 million common shares at 34,000 VND per share.

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