Monday, Jun 15, 2009
MARC has downgraded the rating of Kerisma Berhad’s (Kerisma) RM100.0 million subordinated bonds to D from C to reflect Kerisma’s failure to make payment of principal on the RM100.0 million subordinated bonds on its maturity date, June 10, 2009.
Kerisma had earlier defaulted on its RM870.0 million senior secured bonds and RM30.0 million mezzanine bonds due on June 3, 2009, of which only partial repayment of RM786.1 million was made to the senior bondholders. Subsequently, MARC has received confirmation from the servicer on recovery amount of RM9.0 million made by two defaulted obligors on June 4, 2009, reflecting a recovery rate of 3.63% in respect of defaulted principal. Further recoveries are expected from three of six defaulted obligors, between the present date and September 2009, the extended maturity date of the bonds.
Kerisma is a bankruptcy remote special-purpose company incorporated in Malaysia to undertake the primary collateralised loan obligation (CLO) transaction which closed in June 2004.
Following the rating downgrade to D, MARC no longer has a surveillance obligation in respect of the subordinated bonds.