30 December 2003 12:15 [Source: ICIS news]
LONDON (CNI)--Rhodia’s negotiations with US private placement investors over repayment of $290m (Euro233m) in bonds could run well into next month, CNI learned Tuesday.
A spokesman for the French specialty chemicals company said: “We’re still in negotiations, which could last a couple of weeks more, at least.
He added that Rhodia was not under time pressure. There was no urgency to the talks “taking into account what is in the contract”, he said.
He declined to comment on reports claiming that Rhodia wants to avoid having to repay the debt in the short-term. But, according to a briefing given to CNI last week, Rhodia has been in talks with investors to determine the repayment terms.
Last Wednesday, Standard & Poor’s (S&P) cut Rhodia’s credit and debt ratings despite the troubled French firm having renegotiated a refinancing package with its banks. S&P said it continued to be concerned over the company’s liquidity, especially from mid-2004, and said the US private investors push for repayment of the debt was a further threat.
Along with the announcement of the refinancing package, Rhodia also disclosed tied asset writedowns totalling Euro875m.
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