business and economy
Kazakhstan Kagazy seeks to restructure $105-million debt
(SRI) - Kazakhstan Kagazy Plc, the largest paper producer in Central Asia, said it is seeking to restructure all of its outstanding bonds valued at approximately $105 million, the company said in a statement on the Kazakhstan Stock Exchange (KASE).
The company plans to submit a detailed proposal of the restructuring plan to the KASE by January 28. It said it would propose a deferral of principal repayments, a deferral and reduction of interest payments, and extensions of maturity of the current bonds.
“Discussions with other lenders to Kazakhstan Kagazy continue and further announcements will be made in due course,” the company said in the statement.
Kazakhstan Kagazy, which first warned that it would seek a debt restructuring in November, said “if the restructuring plan for the bonds is not agreed with the bond holders or if the discussions with its lenders do not result in a satisfactory conclusion, the ongoing prospects of the company will be uncertain.”
The London-listed Kazakhstan Kagazy faces its first bond redemption for the amount of KZT4 billion ($25 million) in February 2010.
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