Pakuwon Jati exchange offer bond

PT Pakuwon Jati Tbk announcement that it is commencing an exchange offer and consent solicitation for the 2011 Notes, which are due in November 2010.
Under the exchange offer, Pakuwon will pay bondholders 60% of the outstanding principal as cash upfront and the remaining 40% will be exchanged into US$ step-up cash coupon and paid in kind interest unsecured senior notes due in 2015.
Moody's Investors Service has today downgraded to Ca from Caa1 the senior secured rating for the US$110 million 12% senior secured notes due November 2011 issued by Pakuwon Jati Finance BV, and guaranteed by guaranteed by Pakuwon and its subsidiary, PT Artisan Wahyu. At the same time, Moody's has affirmed the Caa1 corporate family rating of Pakuwon. The outlook for the ratings remains negative.
Fitch Ratings has downgraded Pakuwon long-term foreign and local currency Issuer Default Ratings (IDRs) to C from CC, and its national long-term rating to C(idn) from CC(idn). The agency has also downgraded the US$110m senior notes due 2011 to C/RR4 from CC/RR4 and senior bond I (outstanding IDR38.5bn) due 2011 to C(idn) from CC(idn). Simultaneously, the Rating Watch Negative assigned by Fitch on 18 June 2009 has been removed.