Hogan Lovells advises Ad Hoc Group on restructuring of Novaland Bonds

Hogan Lovells advises Ad Hoc Group on restructuring of Novaland Bonds

Press releases | 08 July 2024

Hong Kong, 8 July 2024 - Global law firm Hogan Lovells has successfully advised an ad hoc group of bondholders (the “Ad Hoc Group”) on the restructuring of US$300 million 5.25% Convertible Bonds (the “CBs” or the “Bonds”) due 2026 issued by No Va Land Investment Group Corporation (“Novaland”), one of the largest mid-market residential real estate developers based in Ho Chi Minh City listed on the Ho Chi Minh Stock Exchange.

A cross-practice, cross-office Hogan Lovells team advised the Ad Hoc Group on their options and potential restructuring of the Bonds against the backdrop of the Vietnamese government implementing policies which have tightened liquidity in the domestic bond market and triggered defaults. Following months of negotiations, Novaland reached an agreement with the Ad Hoc Group for an amendment and restatement of the Bonds.

On 11 April 2024, Novaland filed an application in the Singapore International Commercial Court (the “SICC”) for an order approving the pre-packed scheme of arrangement pursuant to section 71 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 (IRDA) to implement the amendment to the indenture of the Bonds. The Honourable Justice James Peck granted the orders sought by the parties at the hearing on 26 April 2024. This is the first time the SICC has granted such an order, and sets the precedent for future restructuring of foreign companies under the auspices of the SICC. 

The Hogan Lovells team was led by Hong Kong based Restructuring & Special Situations partner Jonathan Leitch, and Vietnam offices managing partner Gaston P. Fernandez with support from counsel Ngoc Nguyen in Ho Chi Minh City, Singapore Restructuring & Special Situations partner Nick Williams and senior associate Wei Lun Koh. Restructuring & Special Situations partner Christopher R. Donoho III and Debt Capital Markets partner Stuart Morrissy in New York provided US law advice. Hogan Lovells worked in conjunction with Sullivan & Cromwell for the Ad Hoc Group. Novaland was represented by Sidley Austin, BlackOak and YKVN.

Bac Duong Van, Chief Financial Officer at Novaland, commented: “On behalf of Novaland, I would like to express my sincere gratitude for the support of the Hogan Lovells team. We could not have completed the CB restructuring without Hogan Lovells' support.”

Hogan Lovells Restructuring & Special Situations team in APAC consists of an integrated and diverse team of finance, corporate, restructuring and litigation lawyers. We provide clients with bold and commercial solutions across the full range of finance, restructuring and special situation issues, including complex cross-border transactions involving debt rescheduling, refinancing and enforcement scenarios. Our involvement for the Ad Hoc Group attests to our experience and capabilities in providing strategic advice and pragmatic solutions in complex situations like this on an integrated cross-jurisdictional and cross-practice basis.