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Thursday, June 10, 2010

Fitch: Arpeni intend to seek new investors

BI / exchange
09/06/2010
Irvin Avriano A.
Bisnis Indonesia

Fitch: Arpeni intend to seek new investors

JAKARTA: PT Arpeni Ocean Line Tbk intend to seek new investors to inject funds as to strengthen its capital base and liquidity as a preliminary step to restructure its debt obligations and their bonds.

The information was revealed in PT Fitch Ratings Indonesia research published yesterday. In the research, Fitch Corporate Ratings Team Director Buddhika Piyasena said Arpeni also freeze payment of principal of bank debt and other liabilities are also deemed to continue in an informal agreement.

Fitch is the rating agency that assesses the company finance, related to the issuance of the company's corporate bonds the are denominated in US dollars.

The rating agency will also review the ratings when Arpeni capitalization structure and credit profile of issuers have more clearly, along with the assessment on the ability to generate operating cash.

"Ranking Arpeni can benefit from increasing their capital structure and liquidity profile of the additional equity and restructure its credit profile. However, taking action based on debt ratings downgrade is still possible, "said Buddhika in the research yesterday.

In researching the same time, Fitch has assign the US dollar-denominated bond rating at level C, related with coupon of debt payment worth at US$6.21 million last week.

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