Monday, April 11, 2011

Puncak Niaga calls for bondholders' meeting after MARC downgrade

KUALA LUMPUR: PUNCAK NIAGA HOLDINGS BHD [] is calling for the respective bondholders meeting following the recent rating actions taken by Malaysian Rating Corp Bhd (MARC) in a move to seek certain waivers from bondholders.

Puncak Niaga said on Monday, April 11 that MARC's actions had resulted in the rating of some of the group's debt to fall below the minimum required under their respective trust deeds.

It added that while the current rating prevails, an event of default existed on some of the group's debt as the revised rating was below the minimum level.

'If allowed to remain, further action (if any) by the respective bondholders could result in a default on the group's debt obligations,' it said.

Puncak Niaga said the management of the group had upon consultation with its legal counsel and certain major bondholders of the group, decided to call for the respective bondholders meeting.

It said the meeting was also for its unit Puncak Niaga Sdn Bhd (PNSB) to seek for certain waivers from the bondholders to address the current situation.

It said the notices of meetings will be sent to the respective bondholders in due course.

On April 6, MARC took various rating actions on the Selangor water sector issuers, including the rating actions against Puncak Niaga, PNSB and 70% owned Syarikat Bekalan Air Selangor Sdn Bhd.

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