Business

TCL completes debt restructuring

Friday, June 29, 2012    

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TRINIDAD Cement Limited (TCL) has completed the restructuring of TT$1.95 billion ($26.8 billion) in outstanding debts to more than 30 regional and international financial institutions and bondholders.

The re-profiling plan extends the maturities of secured and unsecured debt obligations, and involves a quarterly amortisation schedule starting March 30, 2013, with a final maturity of December 30, 2018, TCL advised the stock exchange.

“Final documentation has been signed and all conditions precedent have been satisfied in full,” the company said. TCL said it intends to meet the amortisation requirements prior to final maturity using funds from a variety of sources, including free cash flow from operations and net cash proceeds from strategic initiatives, as well as capital market transactions.

What’s more is that the re-profiling plan includes a covenant package, including revised financial covenants and a mandatory cash sweep repayment mechanism; and a security package comprised of selected additional security over the stock and assets in certain subsidiaries, the company added.

The restructuring exercise comes a month after the end of a 90-day strike action at cashstrapped TCL.

The Oilfields Workers' Trade Union (OWTU), which represents the TCL workers, served strike notice on the company on March 5 after rejecting a 6.5 per cent wage increase offer. TCL later withdrew a seven per cent wage increase offer, reverted to its initial proposal of 6.5 per cent and refused to continue negotiations with the OWTU, which they blamed for “acts of violence and terror tactics against the company,” reported the Trinidad Express.

TCL executives reportedly said that the company suffered losses due to the strike and will take at least six months to return to normalcy.

TCL reported a TT$73.2-million loss for the first quarter ending March 2012, more than double the TT$28 million it losed over the cooresponding period last year.

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