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Wednesday, February 3, 2010

CPRO bond negotiation not finalized yet

Irvin Avriano Arief
CPRO bond negotiation not finalized yet

PT Central Proteinaprima Tbk still seeks approval for bond restructuring worth US$325 million with mostly bond holder investors following the suspended bond coupon payment worth US$17 million.

Corporate Secretary of CP Prima Albert Sebastian said the bond holder representatives have tried to get signature from other bond holders to seek approval from more than 50 percent of investors.

"Now the standstill agreement requirement has been agreed and signed by the representative from some bond holders, but it fails to represent more than 50 percent of the outstanding bonds," he said in statement yesterday.

The failed bond coupon payment was issued by the subsidiary firm of CP Prima, Blue Oceans Pte Ltd. The standstill period will start form the effective standstill agreement up to the achievement of some standstill regulation.

Albert of the bond holders has not had any objection or legal suit from the bond holders following the unpaid bond coupon up to the extension.

"If the 30 days remedy period ends and bond holder fails to meet the requirements as stipulated by the agreement, the bond issuer is deemed fail," he said.

The company has got waiver of default cross clause from domestic bank.

IDX suspended CP Prima stock exchange yesterday due to the rating downgrade by Fitch Ratings last week.

"We had the suspension due to the downgraded rating by the Fitsch. So, we gave suspension while asked their clarification," said IDX company assessment director Eddy Sugito.

The downgraded issuer default rating (IDR) on the long term global bonds was done by Fitch Ratings to the emitter with failure dealing with the default of CP Prima subsidiary firm, Blue Ocean Resources Pte Ltd. the rating was cut down to RD from C level.

"The status of CP Prima obligation fulfillment to BNI is deemed well run. CP Prima problem concerned with the obligation fulfillment to the bond holder."

BNI provided L/C facility and loans worth totally IDR390.07 billion. (Bisnis/ags/mmh/iaa)



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