We were assigned to lead a comprehensive restructuring deal for Novaland to build a sustainable development strategy in the coming years.

Red Capital participated in resolving the crisis at NoVa Real Estate Investment Group Joint Stock Company ("Novaland").

In October 2022, after the Vạn Thịnh Phát incident, both domestically and internationally faced intense challenges. The State Bank of Vietnam sent out a message of “real estate credit control,” causing the entire financial system to freeze: bonds defaulted en masse, the stock market lost liquidity and plummeted uncontrollably.

Thousands of Novaland customers could not secure loans to pay for purchased real estate products. Novaland struggled to settle payments to contractors including credit contracts, and maturing bonds. International creditors faced immense pressure as they also grappled with the crisis.

The focus of handling the Novaland's crisis includes:

  • Classifying and providing solutions to address systemic risks and the company’s specific risks;
  • Reassessing total assets and liabilities to pacify creditors;
  • Liquidating particular assets to balance debts;
  • Restructuring debt: extending debt, converting debt into real estate project capital;
  • Resolving legal difficulties for ongoing projects to normalize business operations;
  • Supporting to resolve difficulties for financially distressed customers.

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