Investors in dollar bonds of PT Arpeni Pratama Ocean Line, the Indonesian shipping company downgraded in September after missing a coupon payment, declined the company’s request for a so-called standstill agreement.
Arpeni Pratama hasn’t received agreements from enough holders of its 8.75 percent notes due 2013, and so is considering its options while holding talks with a potential “strategic investor,” it said in a statement to the Singapore stock exchange today.
The company hopes “in due course” to gain sufficient support from a “sounding board” committee of bondholders to enable it to make further attempts to gain consent, Director Ronald Nangoi said in an e-mailed response to questions.
Arpeni Pratama asked investors to give it until the end of February to reorganize and pay a $6.2 million coupon originally due Nov. 3 without taking legal action or trading the notes, a person with direct knowledge of the matter said on Dec. 2. The Jakarta-based company was cut to RD from C by Fitch Ratings on Sept. 21, indicating a missed payment.
Arpeni Pratama, which says it runs Indonesia’s largest fleet of dry bulk vessels, has the equivalent of $566 million in bonds and loans maturing through 2049, according to data compiled by Bloomberg.
The company signed a term sheet with a strategic investor on Oct. 4 that would help it recapitalize, according to an Oct. 8 Indonesian stock exchange announcement. The strategic investor may invest as much as $60 million via a convertible bond while another $70 million would come from a share issue.
Sold to investors at 98.976 cents on the dollar in May 2006, Arpeni Pratama’s 2013 notes last traded at 51 cents to yield 43.621 percent, according to composite prices on Bloomberg.
Agreement on a standstill couldn’t be reached after one group of bondholders asked to be paid a fee for acceptance, the person familiar with the matter said today.
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