Rhodia confirms protracted talks with US bondholders roll on

PARIS (CNI)--Rhodia told CNI on Monday that protracted negotiations were still continuing with US private investors seeking repayment of bonds but declined to comment on reports concerning possible deal structures.

 

CNI was told at the end of last year that talks were likely to continue until at least the middle of January but as yet there appears no end in sight. The US private investors want their $290m (Euro226m) bonds repaid in light of the French specialty chemicals group's financial difficulties but all Rhodia said previously was that it was negotiating the terms of a settlement.

  

Rhodia declined to comment on a report in the economic daily La Tribune that said repayment of the bonds might be made in two stages, the first in the short term and the second in around six months, including a $50m penalty for having breached terms of the contract. However, La Tribune quoted another source which claimed that Rhodia must refund the whole private placement immediately but should, for all that, have no liquidity problem.

 

Concerns over the possibility of having to repay the private investors was among the concerns of credit ratings agency Moody's, which downgraded the French group's ratings last week.