JAKARTA - PT Kapuas Prima Coal Tbk (ZINC) will hold a General Meeting of Bondholders (RUPO) on February 13, 2024 regarding the repayment of principal and interest on the 2018 KPC Bond I. This issuer has not been able to pay the principal of the Bond due to the decline in performance in the third quarter of 2023.

In an information disclosure quoted on Monday (15/1), Hendra Susanto William, Director of ZINC said that he would hold a General Meeting of Bondholders (RUPO) on (13/2). The agenda is an explanation regarding the negligence in repayment of bonds.

Previously, this issuer held a RUPO on (15/12) which was attended by 23 billion or 100% representing bond holders. This meeting resulted in, among other things, approval for the waiver of KPC's financial obligations in accordance with the provisions of the 2018 KPC Bond I trust agreement with a fixed interest rate.

In addition, the Obligor agrees to maintain a ratio of financial liabilities to equity (debt to equity ratio) of no more than 2.5:1. Maintain a ratio of EBITDA to interest expense of no less than 2.5:1, maintain a debt service coverage ratio for the third to fifth years of no less than 1.25:1 for the financial reporting period as of December 2022.

As is known, ZINC has not been able to pay off the principal of 2018 KPC Bond I worth IDR 23 billion and has only paid the interest on the 20th bond which matures on (21/12).

In September 2023, this issuer posted revenue of IDR 372.74 billion, down from the same period in 2022 of IDR 551.81 billion, gross profit of IDR 82.83 billion, down from IDR 161.85 billion, and profit for the year recorded at IDR 7.09 billion from the previous IDR 12.95 billion. (LK/LM)