NYSE suspends APP, seeks to delist
NYSE suspends APP, seeks to delist
NEW YORK (Reuters): The New York Stock Exchange said on
Tuesday that it suspended from trading and will seek to delist
the shares of Singapore-based Asia Pulp & Paper Co. Ltd, one of
the world's largest vertically integrated pulp and paper
companies.
The NYSE said it will apply to the U.S. Securities and
Exchange Commission to delist APP because the company's 30-day
average share price is less than $1. It added that the company
will not challenge "this determination."
A company representative declined to comment.
Aside from APP's American Depositary Shares, the NYSE also
wants to delist the company's liquid-yield option notes due Nov.
18, 2012, and its guaranteed senior unsecured floating-rate notes
due Oct. 4, 2001.
Back in January, the NYSE notified APP that its average share
price over 30 days was below $1, and the shares stopped trading
on April 4, when they closed at 12 cents.
Because APP failed to convince the NYSE that it could get its
price back above $1, it determined that the shares are "not
currently suitable" for NYSE trading.
The company has been under heavy pressure to restructure a
huge portion of its $11 billion debt, at the same time that it
divests non-core assets.
Analysts have warned that a restructuring of the whole group
is inevitable because of liquidity problems and they estimate
that it has almost $2 billion in notes, coupon payments and bank
loans falling due this year.
APP is controlled by the Sinar Mas Group, Indonesia's second-
largest conglomerate, which is owned by the Widjaja family. It
also has businesses in property, finance, plantation and food
making. But the major cash generator is the pulp and paper
operations, the largest in Asia outside Japan.
Shares in APP's Indonesian units moved lower on Wednesday
partly in reaction to the announcement.
By 2.15 p.m. Jakarta time, PT Indah Kiat Pulp and Paper shares
were down four percent at Rp 360, after earlier trading down more
than five percent. Shares in paper maker PT Tjiwi Kimia were down
4.25 percent at Rp 225.