Kazakhstan Kagazy Delays Payment of 4th Coupon on Bonds
OREANDA-NEWS. September 13, 2010. Kazakhstan Kagazy (Almaty Region) informed Kazakhstan Stock Exchange (KASE) by the official letter on delay of the fourth coupon interest on bonds KZPC2Y07C024 (KASE official buffer category; KKAGb4; KZT100, KZT12.0 bn; August 29, 08 - August 29, 13, the semi-annual coupon 12.00 % APR; 30/360), reported the press-centre of KASE.
According to these bonds issue prospectus Kazakhstan Kagazy was to pay this interest on August 29-September 7, 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:
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Kazakhstan Kagazy informs that it did not pay the coupon interest on bonds of issue NIN KZ2C0Y05D117 for the 4th coupon period in the size of KZT324,004,917 (three hundred twenty four million four thousand nine hundred seventy). As of the current sate on this issue exists an unpaid debt in the size of KZT635,440,083 (six hundred fifty three million four hundred forty thousand eighty three) 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.
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At present ten companies, securities of which are present in KASE official list, informed on inability to fully or partially fulfill their obligations on bonds. Listed companies defaulted payment on bonds is available on KASE website in section "Issuers" ("default") at address http://www.kase.kz/en/emitters
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