XXI Century capitalizes interest on Eurobonds

XXI Century Investments (XXIC LN) said Friday in a statement that pursuant to the terms and conditions of its USD 175 Eurobonds due 2010/2014 it elected to capitalize the interest payment due from July 8 to November 23, 2009. The total amount is USD 6.3 mln, which would have otherwise fallen due on November 24. The capitalization option reflects new terms and conditions following the restructuring of the company’s Eurobond notes this summer. Andriy Gostik: The company is continuing to experience serious liquidity problems. It has just two income generating properties, both pledged against bank loans, which are at risk of being transferred to the banks if the banks do not accept restructuring terms. The decision to capitalize a regular interest payment is sensible in this respect and is another confirmation of the developer’s dire straits. The stock is currently not traded, pending the publication of audited financials.