/KASE, October 2, 15/ – 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:
quote
... 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.
unquote
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
[2015-10-02]