Indonesia exchange halts trading in cocoa producer Davomas
Saturday, 10 March, 2012 | 00:15 WIB

TEMPO Interactive, Jakarta:Indonesia's stock exchange halted trading in shares of cocoa producer PT Davomas Abadi on Friday because of a "failure of debt coupon payment", the exchange said in a statement and requested an explanation from the company.

The company is one of the main cocoa grinders in Southeast Asia's largest economy.

Ratings agency S&P put the company's bond rating at 'CCC+' with a negative outlook in April 2011.

It said a lower rating was possible if Davomas was unable to attain adequate liquidity to meet its future coupon payments or to improve its operating performance and working capital.

Davomas shares hit a record low at 50 rupiah on Friday, having lost 52 percent last year versus the broader Jakarta index's 3 percent gain in 2011.

The country's top grinders are: PT General Food Industries, a unit of Singapore-based Petra Foods Limited ; privately owned PT Bumi Tangerang; PT Effem Indonesia, a unit of privately owned Mars which produces Mars bars and Snickers; and publicly listed PT Davomas Abadi Tbk.

REUTERS