Wednesday, May 09, 2007
MARC has lifted its MARCWatch Negative placement in respect of Stenta Films (Malaysia) Sdn Bhd’s (Stenta) RM90 million Murabahah Notes Issuance Facility (“MUNIF”) and has reaffirmed the short term rating of MARC-4ID.
Stenta is the leading domestic Biaxially Oriented Polypropylene (BOPP) film manufacturer and commands approximately 50% of the market in terms of local production of BOPP film. On the back of strong operational and technical support from P.T. Argha Karya Prima Industry of Indonesia (AKPI), Stenta has been able to gain market share by producing better quality BOPP film. AKPI has more than 20 years of experience in the production of BOPP film.
Notwithstanding, MARC will continue to monitor issues affecting the company, notably the outcome of its ongoing discussions with Prokhas Sdn Bhd for a settlement of the MUNIF ahead of the original maturity in 2010, and its ability to meet an RM7 million scheduled redemption payment in 2007. Although the existence of a liquidity buffer in the form of RM5 million deposited in a maintenance account would cover the bulk of the payment, the replenishment of the account thereafter remains a concern.
MARC will continue to monitor developments closely and provide timely updates accordingly.
9 May 2007
Stenta is the leading domestic Biaxially Oriented Polypropylene (BOPP) film manufacturer and commands approximately 50% of the market in terms of local production of BOPP film. On the back of strong operational and technical support from P.T. Argha Karya Prima Industry of Indonesia (AKPI), Stenta has been able to gain market share by producing better quality BOPP film. AKPI has more than 20 years of experience in the production of BOPP film.
Notwithstanding, MARC will continue to monitor issues affecting the company, notably the outcome of its ongoing discussions with Prokhas Sdn Bhd for a settlement of the MUNIF ahead of the original maturity in 2010, and its ability to meet an RM7 million scheduled redemption payment in 2007. Although the existence of a liquidity buffer in the form of RM5 million deposited in a maintenance account would cover the bulk of the payment, the replenishment of the account thereafter remains a concern.
MARC will continue to monitor developments closely and provide timely updates accordingly.
9 May 2007