IDX revoked CP Prima suspension: Negotiation still underway with the bond investors

Tuesday, 19/01/2010 00:00 WIB

IDX revoked CP Prima suspension: Negotiation still underway with the bond investors

JAKARTA: The Indonesia Stock Exchange (IDX) revoked the suspension of PT Central Proteinaprima Tbk (CP Prima) stock trading upon considering the explanation given by the company last week.

IDX corporate assessment director Eddy Sugito said the revoked suspension was done by the bourse authority yesterday so the company could take the trade today.

The suspension of CP Prima happened after the plummet of credit and global bond rating for the subsidiary firm, Blue Ocean Resources Pte Ltd, as from two rating companies and media coverage in some newspaper on the issue.

Fitch Ratings cut down the rating of long term debt in foreign currency denomination from CC to C. all emitter ratings are under the special supervision with rating watch negative (RWN). Moody's Investors Service also cut the rating of CP Prima from Caal to Ca level with negative prospect.

The rating plummet happened due to the unpaid bond coupon with the maturity on December 28, 2009, worth US$17.9 million as from the outstanding US$325 million.

Eddy said the information given by emitter through the public expose last week was enough to provide chance for the corporate investor and capital market player to set their option.

"We think with the public expose, it was adequate despite the uncertainty. However there was explanation given by the company acceptable to the investors," he said yesterday.

The suspension was revoked by the bourse authority today as the company had given explanation on the debt and bonds of the subsidiary firm last week and thus IDX could discuss about it yesterday.

"We could not coordinate yet with the other part such as from the trade directorate as we could just meet and discuss it yesterday."

In the public expose last week, Corporate Secretary of CP Prima Albert Sebastian said the company got extended debt payment from BNI. The payment of IDR390.07 billion was extended up to June 22, 2010 from September 20, 2009.

The company will either called for exemption from the other domestic bank creditor with cross default clause and other clauses. Albert said the company still believed to have up to 30 days from the due date and thus it might not be deemed default yet.

Eddy said the bourse authority could barely force the emitter to provide details of each query as it depends on the preparedness of the company alone.

The bourse also acknowledges if the company has its own consideration so that it could hardly explain the negotiation with the bond investors and the restructuring plan of the company.

When asked, Marketing and communication director of CP Prima Rizal I. Shahab and Finance Director of CP Prima Gunawan Taslim, Albert Sebastian, including Corporate Communication Manager of CP Prima Fajar Reksoprodjo were not available last night.

The stock price stays at the level of IDR60 per share unit as from the suspended on January 7. (Bisnis/iaa)