Mar 15, 2010

Again, Mobile-8 falls into default

PT Mobile-8 Telecom Tbk (FREN) again has fallen into default. Today, a wounded CDMA-based operator that used to be owned and controlled by PT Global Mediacom Tbk (BMTR) declares unable to pay 12th interest and ninth fine of rupiah restructured bond.
Due to failing the interest payment, Indonesia Stock Exchange today has suspended shares trading in all markets. Speaking in a public statement to Indonesia Stock Exchange today, Mobile-8 Director Anthony C. Kartawiria said as of the payment day, the company still unable to pay the bond interest as it failed to obtain cash flow.
He said that Mobile is striving to fulfill the obligation during spare time provided in bond issue agreement.
According to Mobile-8 September financial report, rupiah bond worth Rp675 billion was restructuring. The maturity has been extended to June 15 2017. Interest payment is set into four schemes, 12.375% for 9 quarters starting on June 15 2007, 5% for 8 quarters starting on September 15 2009, 8% for 12 quarters starting on September 15 2011, and 18% for 12 quarters starting on September 15 2014.
Outstanding interest due in March 15 and June 15 2009 including penalty is to be paid in four equal payments and the last payments date is March 15 2010. Mobile-8 must to maintain a sinking fund in the amount of two times next interest payments.
In my view, I don't believe what is Mobile-8 said in the statement. I have known for long time that the company will fail to meet its commitment. If I were Mobile-8 bond holder, I would rather bring it into court than convert bonds into shares.       

2 comments: said...

where's Sinarmas? this is a very serious issue.

Insider Stories said...

I didn't find it..i think sinarmas shares have reduced to below 5%