Bloomberg News

Petrominerales Plunges on Payment-Delay Proposal: Bogota Mover

June 21, 2013

Petrominerales Ltd. (PMGC) fell the most on Colombia’s benchmark stock index, extending the biggest three-day slide in two months as the oil producer seeks to delay a bond-repayment deadline.

Petrominerales dropped 3.5 percent to 11,100 pesos at 12:29 p.m. in Bogota, capping an 11 percent decline over the past three days. The benchmark Colcap index fell 0.2 percent today.

The Calgary-based company, which gets most of its output from Colombia, said yesterday it’s seeking a six-month postponement of an August option that lets holders of $144 million of convertible bonds claim immediate repayment. The company has said the delay will give it more time to raise money by selling its 5 percent stake in the Ocensa pipeline, which runs from Colombia’s oil-rich eastern plains to the Caribbean coast.

“The company showed that it has real liquidity problems, and people keep selling the stock on that concern,” Maria Adelaida Velasquez, a Medellin-based analyst at brokerage Serfinco said in a telephone interview.

Norsk Tillitsmann ASA, the trustee for the bonds, has set a July 5 meeting to approve the delay, according to a notice to investors. The company’s pipeline assets are valued at $328.3 million on its financial statements, according to the notice.

According to the company’s statement, Petrominerales has already received support from holders of $60 million of the bonds, or about 42 percent of the amount outstanding.

To contact the reporter on this story: Christine Jenkins in Bogota at cjenkins28@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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