Vietnam’s No Va Land Investment Group Corp is in talks with creditors to restructure part of its $1 billion foreign debt, according to two people familiar with the matter. The company has reached deals with some creditors and is considering options to restructure other parts of its foreign debt, including Credit Suisse, which has committed to loans worth about $55 million.
No Va Land is also trying to reduce repayment pressure by selling assets, but has struggled to find buyers. The company’s total debt, including domestic loans and bonds, is about $2.7 billion, equivalent to 24% of its assets.
The real estate sector in Vietnam has been hit by a government crackdown on corruption and stricter rules on corporate bond issuance and refinancing, leading to a credit crunch and a surplus of high-end property. No Va Land, currently valued at around $1.1 billion after an 83% plunge in its shares in the last 12 months, is the fifth-largest developer by market value in the country.