LDG Investment Corporation (LDG Investment; HoSE: LDG) has regularly disclosed information about the payment of principal and interest for its lot of bonds worth VND400 billion in 2024. The bonds were issued by LDG Investment in December 2021, with a two-year term and an interest rate of 11.5 percent per annum.

As of December 31, 2024, LDG Investment owed VND186.4 billion in principal and VND26.7 billion in interest for 11 periods in 2023.

Explaining the delay in payment of principal and interest, LDG Investment cited prolonged economic difficulties, stating that it is working with partners to restructure assets and cash flow. 

"The company is still negotiating with bondholders about the principal and interest payment plan," a representative of LDG Investment said.

Established in 2010, LDG Investment is a prominent real estate business in the South, known for its numerous apartment and residential projects in HCM City, Binh Duong, Dong Nai, and Can Tho City.

In terms of residential development, LDG Investment has the Tan Thinh residential quarter project (commercially named Viva Park) in Trang Bom District in Dong Nai Province, and the Thanh Do Urban Area in O Mon District in Can Tho City.

Regarding Viva Park project, the Dong Nai Police in May 2023 initiated an investigation into "abusing of position and power while performing official duties" related to the illegal construction of 500 houses and villas.

The residential quarter project was advertised as the ‘first smart city of Vietnam’. The Dong Nai provincial authorities approved the development of the project on the location in September 2016. In 2018, the localities issued another decision, approving the 1/500 detailed planning of the project.

The project was initially designed to cover an area of 18 hectares, comprising 680 townhouses and villas, which could accommodate up to 3,000 residents, with modern facilities, such as healthcare, supermarket and schools, as well as public works.

Subsequently, Dong Nai Police prosecuted five suspects who were former leaders and staff of various departments in Trang Bom District. 

Meanwhile, two officers of LDG Investment were prosecuted, including Nguyen Khanh Hung, former Chairman of the Board of Directors, and Nguyen Quoc Vy Liem, former Deputy General Director.

LDG Investment’s financial statements for Q3 2024 showed that LDG Investment suffered a loss of VND77 billion, higher than the VND65 billion loss in the same period of 2023. Cumulatively, in the first nine months of 2024, the real estate enterprise incurred a loss of over VND473 billion.

Local newspapers in mid-2024 reported that Phuc Thuan Phat Trade and Construction JSC requested the court to open bankruptcy proceedings against LDG Investment.

LDG then sent a written request to the court asking to cancel the decision to open bankruptcy proceedings against the company, while the company was still negotiating with Phuc Thuan Phat about the debt payment.

Manh Ha