Agroton bondholders agree on restructuring terms

A bondholders meeting of Agroton’s (AGTPW) USD 50 mln notes maturing in 2014 approved the bond’s restructuring terms, the company stated in its August 9 release. They include extending the bond’s maturity by five years to July 2019, cutting its coupon to 8.0% from 12.5%, postponing its recent coupon payment (due July 14, 2013) by six months, and loosening its financial leverage covenants. Following the news, Agroton shares (AGT PW) increased 9.6% to PLN 2.52, the price before it had reported defaulting on its recent coupon.

Alexander Paraschiy: The company expectedly avoided a default on its Eurobonds. Nevertheless, its image on the Warsaw Stock Exchange seems to be seriously damaged to the extent that we will hardly see any significant increase in the price of its shares in the near future. Agroton stock has lost more than 90% of its value since its 2010 IPO, with the most significant drops having occurred in April-May 2012, when it was caught manipulating its revenue, and April 2013, when S&P downgraded its credit rating for the second time in a year.