PPC reaches agreement on DRC debt restructuring
The deal with lenders to PPC's DRC unit means they no longer have recourse to SA balance sheet, but restructuring must be done by end-September
Cement maker PPC has reached a binding agreement with lenders to its unit in Democratic Republic of Congo (DRC) to restructure $175m (R2.6bn) in senior debt owed by the unit, which simultaneously eliminates their right to seek recourse from the broader group in the event of nonpayment.
The Johannesburg-based cement giant, which was founded in 1892 as De Eerste Cement Fabrieken Beperkt, said the agreement would be effective upon payment of a final deficiency settlement of $16.5m (R243m), which PPC expects to make “in early April”, according to a Sens statement on Wednesday. The agreement also involves restructuring the $175m in senior debt owed by PPC Barnet as part of implementing a sustainable capital structure for its debt-laden DRC unit...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.