The Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) is demanding an explanation from PT Central Proteinaprima (CP Prima) over reports suggesting the subsidiary of the local shrimp producer has failed to repay bond coupons worth US$325 million.
Bapepam real sector division chief Anis Baridwan said Friday that his office had sent letter to CP Prima management asking for further clarification in relation to its Blue Ocean Resources Ltd. bond default.
“We sent [the letter] today,” Anis said, adding that the move was triggered by reports published in the media, quoting information from Fitch Ratings that decided to downgrade CP Prima’s credit rating to C, because of the company’s inability to repay its bond coupons due last December.
Aside from demanding an explanation, the letter also requested the company explain its next move in handling the situation.
Based on the latest Fitch report, the company did not have enough repay the bond coupons at this stage.
As of September, the company’s cash reserves stood at $21 million. That amount would only be sufficient to cover the company’s operational expenses and not the coupons, estimated to be worth up to $17 million.
CP Prima is reportedly having trouble with its shrimp ponds that are believed to have become infected with a virus, requiring the company to spend more on its operational budget.
CP Prima corporate communications manager Fajar Reksoprodjo said the company could not comment on the Fitch report at this stage.
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