PT Davomas Abadi Tbk, Indonesia' sbiggest producer of cocoa products, said bondholders controlling 97 percent of its $238 million of notes agreed to an exchange offer for a debt reorganization. Davomas offered to swap its 11 percent notes due 2011 for up to $119 million of variable-rate notes due 2014.
Davomas sought a temporary reduction in the coupon to 5.5 percent. Davomas, which is rated Ca, the second-lowest junk grade by Moody's Investors Service, needed 75 percent majority consent for the debt offer to proceed. The company in May failed to pay interest on the notes it sold in 2006 after saying customer cancelations cut prices for cocoa products amid the
worst recession since the Great Depression.
worst recession since the Great Depression.
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