Tjiwi Kimia makes coupon payment
Tjiwi Kimia makes coupon payment
HONG KONG (Dow Jones): Indonesia's PT Tjiwi Kimia, a unit of Asia Pulp & Paper, made a coupon payment of US$13.25 million Thursday in New York, an official at the custodian, the Bank of New York, told Dow Jones Newswires Friday.
Tjiwi Kimia had missed the coupon payment due Feb. 1 and the company had a 30-day grace period to pay the coupon before a default would be declared.
APP came close to triggering a series of defaults throughout the group when Tjiwi Kimia missed two coupon payments Feb. 1. While both coupons were paid within the grace periods, observers say that APP's problems are far from over.
The company said last month in a statement that it was getting financial advice on a potential debt restructuring but declined to give any further detail.
Analysts say that some form of restructuring, which will involve a hair cut, or losses, from investors will likely be laid on the negotiating table by the group. It's struggling to manage about $10 billion of debt, of which $1.5 billion is due this year.
APP, which is headquartered in Singapore and is the region's largest corporate borrower, still needs to find about $100 million for more coupon payments in the next two months.
Separately, Standard & Poor's raised Friday its corporate credit ratings on Indonesia-based forest products company, PT Tjiwi Kimia to triple-'C'-minus from 'SD' (selective default).
At the same time, Standard & Poor's also raised its senior unsecured ratings on the US$200 million and US$600 million notes issued by guaranteed subsidiaries Tjiwi Kimia International Finance Co. B.V and Tjiwi Kimia Finance Mauritius Ltd., to triple-'C'-minus from 'D', and to triple-'C'-minus from double- 'C', respectively. All ratings are placed on CreditWatch with negative implications.
The rating actions follow Tjiwi Kimia's payment of the US$13.25 million interest on the US$200 million notes within the 30-day grace period, after the company missed the payment due date of Feb. 1, 2001.