OREANDA-NEWS. September 09, 2010. Kazakhstan Kagazy (Almaty Region) informed Kazakhstan Stock Exchange (KASE) by the official letter on delay of the eighth coupon interest on bonds KZPC2Y07C024 (KASE official buffer category; KKAGb3; KZT1, KZT3.5 bn; August 22, 06 - August 22, 13, the semi-annual coupon indexed at the inflation rate 7.70 % APR for the reporting coupon period; 30/360), reported the press-centre of KASE.

According to these bonds issue prospectus Kazakhstan Kagazy was to pay this interest on August 22-September 6, 2010. The prospectus specifies that "in case of default on payment or incomplete payment at fault of the Issuer of coupon interest and/or the principal debt in the terms set with the Prospectus, the Issuer shall pay bondholders fines for each day of delay, on the basis of the official refunding rate of the National Bank of the Republic of Kazakhstan as of the day of money obligation or its part fulfillment".

In the letter Kazakhstan Kagazy informed that:

Kazakhstan Kagazy informs that it did not pay the coupon interest on bonds of issue NIN KZPC2Y07C024 for the 8th coupon period in the size of KZT131,922,945 (one hundred thirty one million nine hundred two thousand nine hundred forty five). As of the current sate on this issue exists an unpaid debt in the size of KZT287,831,880 (two hundred eighty seven million eight hundred thirty one thousand eight hundred eighty) due and payable.

... At present the issuer negotiates with bonds holders the change in debt securities issue terms.

Based on the above said and considering complicated financial status of the issuer, the order and terms of repayment will be agreed on with bonds holders.