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.