After nearly a year full of economic hardship, the domestic real estate market in the latter half of 2023 is showing signs of recovery. Nevertheless, the tightening of real estate credit policies by financial institutions, along with lingering market uncertainty, remains a significant hurdle, impacting liquidity for various enterprises, including Novaland, which has not yet stabilized as anticipated.
In this context, Novaland's revenue and ability to raise new capital have been significantly affected. Cash accounts for the company's projects are closely monitored by banks for project development purposes. Consequently, Novaland faces difficulties in meeting payment obligations to both domestic and international creditors according to the plan. The company is currently making efforts to restructure its debts and negotiate appropriate arrangements to ensure a balance of interests with bondholders and other creditors.
Regarding the outstanding amount of international convertible bond of $298.6 million, which has no collateral and is listed in Singapore, Novaland recently engaged in discussions with an Ad Hoc Group of bondholders about liquidity challenges that have led to the inability to meet the $7.8 million interest payment obligation on time. Specifically, Novaland has proposed and is currently negotiating with the Ad Hoc Group of bondholders on a debt restructuring plan that aligns with the Company's current financial capacity and the timeline for business recovery, with supports from international and domestic advisory firms such as Deloitte, Sidley Austin LLP, and YKVN.
Novaland is committed to persistently negotiate and resolve matters with a cooperative spirit, aiming to find optimal solutions that safeguard the interests of bondholders. The company has been and continues to undergo comprehensive restructuring under the guidance of reputable domestic and international partners. During this phase, Novaland requires additional time for recovery; hence, the company seeks the cooperation of creditors and bondholders to stabilize its business operations and fulfill financial obligations with creditors and related parties.
Over recent times, with the government's guidance and the determined efforts of local authorities and agencies, legal and investment procedure obstacles in Novaland's projects such as NovaWorld Phan Thiet, Aqua City, The Grand Manhattan, and others have gradually been resolved, yielding positive signals. Previously, many of the company's projects were also resumed, including Victoria Village, NovaWorld Ho Tram, Aqua City, NovaWorld Phan Thiet, and The Grand Manhattan, with the support of major financial partners such as TPBank, MBBank, VPBank, as well as experienced contractors and construction companies.
A standout development is NovaWorld Phan Thiet, a 1,000-hectare tourism and entertainment economic city, which has become a favorite destination in Binh Thuan province, attracting a large number of tourists. Prominent amenities including the PGA NovaWorld Phan Thiet golf course, Circus Land entertainment park, and Wonderland Water Park are open seven days a week. NovaWorld Phan Thiet is also progressively enhancing its resort, recreation, and entertainment facilities, aiming to welcome 5 million visitors in 2024.