CP Prima stocks suspended

Sabtu, 09/01/2010 00:00 WIB

CP Prima stocks suspended

JAKARTA: The Indonesia Stock Exchange (IDX) decided to suspend the trade of PT Central Proteina Prima Tbk (CPRO) stocks from the first session yesterday.

Real Sector Assessment Division Head I Gede Nyoman Yetna said the suspension was given in relation with the debt interest payment settlement.

"The bourse decided to suspend the CPRO trade at all markets since session I January 8, 2010 until further notice," he said in public expose yesterday.

CP Prima failed to pay bond coupon worth US$17.9 million on the December 28, 2010 due date. But so far there is no way out of the problem so the Fitch Rating cut down the rating.

In addition to Fitch Rating, the other rating company like Moody's Investors Service also cut off the CP Prima and bonds from Caa1 to Ca levels with negative rating prospect.

"The rating reflected the failure of CP Prima bond coupon payment December 28, 2009 from the outstanding bonds value of US$325 million. We assume the company will have 30 days to pay the coupon here," said Vice President Moody's Ken Chan in press release yesterday.

The corporate liquidity profile is still considered low with cash position of US$20 million per September 2009. The short term cash flow of the regeneration company is still limited up to finalization of the viral contamination to the shrimp ponds.

Besides, Moody's said CP Prima ability to seek loan from bank is limited due to the unfulfilled covenant limit in the prior agreement.

The negative prospect shows the expectation of unpaid coupon guaranteed by CP prima within the agreed time and of the absence of corporate operational ability in the past few quarters.

Meanwhile, The Capital Market and Financial Institution Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) will call for CP Prima to clarify the bond coupon default.

"We have sent letter to the emitter and waited for the prompt response," said Real Sector Corporate Finance Bureau Chief of Bapepam-LK Anis Baridwan.

Corporate Communications Manager of CP Prima Fajar Reksoprodjo could not provide statement on the bond problem. (Bisnis/Irvin Avriano A/Arif Gunawan S)