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...