Global fund management company Mackenzie Cundill Investment Management Ltd continued to exit from a wounded sea transportation firm PT Arpeni Pratama Oceal Line Tbk (APOL). In return, Mackenzie has enlarged shares ownership in PT Bakrie & Brothers Tbk (BNBR).
Mackenzie sold Arpeni shares from December 2 to December 10 consecutively at various prices level, shrinking its ownership to 7.69% or 230.61 million of shares.
The fund management collected 300 million and 100 million of Bakrie & Brothers shares from the market, spending Rp37.95 billion in cash. Adding to that, Mackenzie now owns 5 billion of BNBR shares or 5.33% of total shares.
Fitch Ratings downgraded Arpeni Ocean long-term foreign and local currency issuer default ratings to C from CCC. At the same time, the rating agency cut national long term rating to C(idn) from B+(idn).
The rating agency has also cut downgraded Arpeni's dollar denominated senior unsecured notes due 2013 to C from CC as well as removal of the company from rating watch negative.
These rating actions follow the publication of Arpeni's September financial statements last year, which showed a significantly weakened balance sheet and liquidity, despite a marginal improvement in EBITDA.
Fitch believes that Arpeni's dismal liquidity and weaker-than-expected operating cash generation are likely to result in a debt restructuring that may constitute a coercive debt exchange under Fitch's CDE criteria.
Arpeni's indebtedness soared driven by liabilities relating to derivatives, which rose to Rp606 billion at 30 September 2009 versus Rp194 billion at second quarter.
