OREANDA-NEWS. Kazakhstan Kagazy JSC (Almaty region), whose bonds are officially listed on Kazakhstan Stock Exchange (KASE), has by an official letter informed KASE of a delay in payment of the ninth coupon interest on its bonds KZP01Y20C023 (KZ2C00000263, KKAGb2) and KZP02Y22C027 (KZ2C00000271, KKAGb3).

Kazakhstan Kagazy in its letter says as follows:

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... in accordance with sub-item 5 of item 2 of article 29 of the Listing Rules announces the impossibility of payment of coupon interest on bonds NIN KZP01Y20C023 (KKAGb2) for the ninth coupon period to the amount of KZT58,543,562.25 and bonds NIN KZP02Y22C027 (KKAGb3) for the ninth coupon period to the amount of KZT58,140,568.13 until October 2, 2015.

Currently, the group of companies Kazakhstan Kagazy is experiencing some financial difficulties. The company is gradually recovering after the fall of the Russian ruble and activation of Russian producers of corrugated paper in Kazakhstan. During the crisis the Company had to substantially reduce selling prices to retain the customer base, which significantly reduced operational revenues. At the same time, the costs rose due to the rise in utility prices and main raw materials depending upon the US dollar exchange rate. The Company has been working on stabilization of its financial position: customers are negotiated with to increase the selling prices, the customer base is recovering, and production costs are optimized.

Due to the above-mentioned the management of the group of companies Kazakhstan Kagazy hopes for understanding and support from bondholders and plans to ask for provision of delay of interest payment until December 31, 2105.

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The list of listed companies committed default on their bonds is available on KASE website in section "Instruments and their issuers" – "CS issuers" (tab "Default") at http://www.kase.kz/en/emitters