CP Prima to call for debt standstill

as published in Bisnis Indonesia daily newspaper

Saturday, 16/01/2010 00:00 WIB

CP Prima to call for debt standstill

By Irvin Avriano A. & Sylviana Pravita R.K.N.

as published in Bisnis Indonesia daily newspaper

JAKARTA: PT Central Proteinaprima Tbk (CP Prima) plans to call for debt standstill from the bond holders within 30 days prior to the payment of US$17 million coupon due on December 28, 2009.

In the public expose to the IDX, CP Prima has 30 days to better the negligence here.

With the debt standstill condition, the bond holders agreed not to take any legal suit to the company. CP Prima is in negotiation phase with the bond holders to take possibility of the debt restructuring.

Meanwhile, CP Prima claimed to reach deal to extend the payment of the total of IDR390.07 billion loan to PT Bank Negara Indonesia Tbk (BNI) as from the September 20, 2009 due date into June 22, 2010.

“The statues of L/C facility from BNI has been extended from early limit of September 20, 2009, into June 22, 2010,” said Corporate Secretary of CP Prima Albert Sebastian, in the public expose to IDX yesterday.

He said the credit tenure of CP Prima to BNI has been extended with the tight requirement and guarantee.

The explanation of CP Prima to IDX is due to the unpaid bond coupon worth US$17 million issued by the subsidiary firm, Blue Ocean Resources Pte Ltd. the bond outstanding is worth at US$325 million.

Company assessment director of IDX Eddy Sugito said the company could not ensure whether or not to re-open emitter stock exchange from the suspension last week.

“I have not got any report on the emitter’s details,” said Eddy.

The suspension was done due to the bond rating and bond coupon default of Blue Ocean which is guaranteed by the company.

Real Sector Corporate Finance Assessment Bureau Chief of Bapepam-LK Anis Baridwan said the capital market authority has got responses from CP Prima this week.