Sunbay Ninh Thuận says cancellation of 17 land-use certificates at Sunbay Park Hotel & Resort does not affect bond obligations

Sunbay Ninh Thuận said the cancellation of 17 land-use certificates related to the Sunbay Park Hotel & Resort project is being carried out to reissue the documents in line with the approved master plan. The company stated the adjustment does not affect its ability to service bond principal and interest.

Cancellation decision and purpose

In a filing dated 03/04 to the Hanoi Stock Exchange (HNX), Sunbay Ninh Thuận said the Khánh Hòa Land Registration Office issued a decision to cancel the 17 land-use certificates for the Sunbay Park Hotel & Resort project.

The company said the cancellation is intended to redo procedures for issuing, adjusting the purpose and duration of land use so that the certificates match the approved master plan. Sunbay Ninh Thuận emphasized that the change “does not affect the ability to repay bond principal and interest.”

Link to bond collateral

Of the 17 certificates, 14 are being used as collateral for bonds including SBPC2124002, SBPCB2225001, SBPCB2227002, and SBPCB2228003. Sunbay Ninh Thuận said it will need to coordinate with regulators and bondholders to ensure compliance with land-use regulations while maintaining commitments to investors.

Background from the Government Inspector’s conclusion

Earlier in the year, Sunbay Ninh Thuận said it received a request from authorities to resubmit the 17 land-use certificates by January 15 to support adjustments and align with the plan approved following a recommendation from the Government Inspector.

In a conclusion published late 2025, the Government Inspector noted that the 17 certificates had been issued for long-term residential land, while the actual land bank is commercial service land with a time limit. Authorities therefore revoked the prior certificates to adjust them to the approved master plan.

Project scale and ongoing legal and financial issues

Sunbay Park Hotel & Resort is described as a flagship project with an investment of nearly 4.8 trillion VND, developed on more than 3.6 hectares along the coast of Ninh Thuận. The project includes three towers, with main components completed and in use since 2024.

However, the project still faces legal and financial issues. At the time of the inspection, Sunbay Ninh Thuận had not paid about 171 billion VND in land-use fees and late payments.

Financial pressure and liquidity concerns

Beyond the land-use certificate issue, the company’s financial position remains under pressure. The 2025 annual financial report shows Sunbay Ninh Thuận continuing to record a net loss of nearly 17 billion VND, bringing cumulative losses to nearly 300 billion VND.

Total liabilities exceed 3.7 trillion VND. Bond debt accounts for more than 1.5 trillion VND, while equity is less than 473 billion VND, resulting in a debt-to-equity ratio of almost 8x.

Short-term cash flow is also constrained, with short-term debt exceeding current assets by more than 2 trillion VND. Interest coverage is around 0.33x, and auditors flagged potential going-concern risks.