Davomas failed to pay bond coupon

PT Davomas Abadi Tbk failed to pay bond coupon worth US$13.09 million or IDR136.14 billion matured on 8 May due to the cash plummet and worsening financial performance.
Corporate Secretary of Davomas Hasiem Willy said the company has prepared the debt restructuring with creditor.
"We are processing the selection of professional to help restructure finance," he said in public expose to IDX yesterday.
The total US$238 million bonds or IDR2.48 trillion provide 11 percent coupon per year. The Davomas bond matured on 8 and 9 of May 2011. as from the total global bonds, some US$125 million was issued on May 8, 2006, US$25 million issued on December 21, 2006, and US$88 million sold on August 31, 2007.
The bond was guaranteed by repurchase order of all assets including loans among holding and subsidiary companies, share possession of Hassocks Enterprises Ltd, Caterpilllar Associates Ltd, Krigler Holdings Ltd, Polar Cap Investments Ltd, and Templeton Ltd. All the shares are collectively collected in BVI Companies.
The bond is guaranteed by BVI Companies owned by Tse Kam Bui the single shareholder of the company, Davomas account in Jakarta and Singapore, and repurchase order of all machinery and equipment on the eighth and ninth lines.
The rating company, Moody's Investors Service, last month cut down Davomas Abadi and its bond rating as from B2 into Caal with negative prospect.
Analyst of Moody's Wonny Chu said the downgraded rating was due to the corporate cash drop. Moody's questioned the capability of Davomas to meet the coupon payment in May and November this year.
Davomas is the largest producer and exporter of solid and powdered cocoa in Indonesia.
Davomas shares possession up to March 2009 is owned by some institutional investors, namely Krigler Holdings Limited (7.75 percent), Lehman Brothers Investment Pte Ltd S/A (11.11 percent), PT Sheriutama Raya (6.03 percent), Citi Pacific Securities (9.01 percent), and Caterpillar Associates Ltd (11.46 percent).