NYSE suspends APP, seeks to delist<\/p>\n
NEW YORK (Reuters): The New York Stock Exchange said on
\nTuesday that it suspended from trading and will seek to delist
\nthe shares of Singapore-based Asia Pulp & Paper Co. Ltd, one of
\nthe world's largest vertically integrated pulp and paper
\ncompanies.<\/p>\n
The NYSE said it will apply to the U.S. Securities and
\nExchange Commission to delist APP because the company's 30-day
\naverage share price is less than $1. It added that the company
\nwill not challenge \"this determination.\"<\/p>\n
A company representative declined to comment.<\/p>\n
Aside from APP's American Depositary Shares, the NYSE also
\nwants to delist the company's liquid-yield option notes due Nov.
\n18, 2012, and its guaranteed senior unsecured floating-rate notes
\ndue Oct. 4, 2001.<\/p>\n
Back in January, the NYSE notified APP that its average share
\nprice over 30 days was below $1, and the shares stopped trading
\non April 4, when they closed at 12 cents.<\/p>\n
Because APP failed to convince the NYSE that it could get its
\nprice back above $1, it determined that the shares are \"not
\ncurrently suitable\" for NYSE trading.<\/p>\n
The company has been under heavy pressure to restructure a
\nhuge portion of its $11 billion debt, at the same time that it
\ndivests non-core assets.<\/p>\n
Analysts have warned that a restructuring of the whole group
\nis inevitable because of liquidity problems and they estimate
\nthat it has almost $2 billion in notes, coupon payments and bank
\nloans falling due this year.<\/p>\n
APP is controlled by the Sinar Mas Group, Indonesia's second-
\nlargest conglomerate, which is owned by the Widjaja family. It
\nalso has businesses in property, finance, plantation and food
\nmaking. But the major cash generator is the pulp and paper
\noperations, the largest in Asia outside Japan.<\/p>\n
Shares in APP's Indonesian units moved lower on Wednesday
\npartly in reaction to the announcement.<\/p>\n
By 2.15 p.m. Jakarta time, PT Indah Kiat Pulp and Paper shares
\nwere down four percent at Rp 360, after earlier trading down more
\nthan five percent. Shares in paper maker PT Tjiwi Kimia were down
\n4.25 percent at Rp 225.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/nyse-suspends-app-seeks-to-delist-1447893297",
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