Arpeni Pratama to miss November coupon, seeks waiver and forbearance

New York, Nov. 10 - PT Arpeni Pratama Ocean Line TBK and bond issuing subsidiary Arpeni Pratama Ocean Line Investment BV said the subsidiary does not expect to be able to make the coupon payment that was due on its 8.75% guaranteed secured notes due 2013 on Nov. 3 until sometime in January.

The company said it intends to seek a limited waiver and forbearance agreement with an ad hoc steering committee to be formed shortly by some noteholders.

The waiver will cover both the non-payment of interest and Arpeni Pratama's inability to meet reporting and notice obligations, all of which are defaults under the note indenture, the company reported in a notice to investors.

Arpeni Pratama is asking noteholders to waive the defaults and forbear from exercising any remedies until Jan. 31, 2011 or the successful restructuring of the notes, whichever comes first.

The company added that it will make the interest payment earlier if it is able to do so.

The proposed steering committee will retain O'Melveny & Myers LLP as counsel.

Once the agreement is negotiated with the committee, it will be sent to all holders of the notes. Arpeni Pratama will ask for the agreement to be executed by Nov. 26. No fee will be paid.

Arpeni Pratama is a Jakarta, Indonesia-based ocean shipping firm.

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