Petrominerales Plunges on Payment-Delay Proposal: Bogota MoverChristine Jenkins
Petrominerales Ltd. fell, extending the biggest three-day slide in two months as the oil producer seeks to delay a bond-repayment deadline.
Petrominerales dropped 1.6 percent to 11,320 pesos at the close in Bogota, pushing the decline over the past three days to 9.9 percent. The benchmark Colcap index fell 1.2 percent today.
The Calgary-based company, which gets most of its output from Colombia, said yesterday it’s seeking a six-month postponement of an August option that lets holders of $144 million of convertible bonds claim immediate repayment. The company has said the delay will give it more time to raise money by selling its 5 percent stake in the Ocensa pipeline, which runs from Colombia’s oil-rich eastern plains to the Caribbean coast.
“The company showed that it has real liquidity problems, and people keep selling the stock on that concern,” Maria Adelaida Velasquez, a Medellin-based analyst at brokerage Serfinco said in a telephone interview.
Norsk Tillitsmann ASA, the trustee for the bonds, has set a July 5 meeting to approve the delay, according to a notice to investors. The company’s pipeline assets are valued at $328.3 million on its financial statements, according to the notice.
According to the company’s statement, Petrominerales has already received support from holders of $60 million of the bonds, or about 42 percent of the amount outstanding.