Lucror Says No Cash at Rolta’s Holdco Level for Coupon Payment

After Rolta missed a $6.8 million coupon payment on May 16 and posted results for the financial year ended March 2016, Trung Nguyen, analyst at Lucror Analytics, writes in a commentary note following earnings call:" In our view, there is no cash at the holdco level at the moment,” Nguyen said in the commentary.

In an e-mail to Bloomberg, Nguyen cited the missed coupon payment and a missed payment on an external commercial borrowing due in March, which he said the company had confirmed on the call, to back his view.

There was no immediate reply to an e-mail sent to Rolta. Two calls to the company’s main line went unanswered.

Rolta reported 2.3 billion rupees ($34 million) of cash as of March 31; during the call on Monday, the management said that more than half was pledged against other borrowings and “restricted,” and the rest spread across business units to support operations, according to Nguyen.

NOTE: Rolta has a 30-day grace period that ends on June 15 for the missed coupon payment.

Lucror says Rolta’s management shows “little respect to investors and creditors alike”

Rolta’s 10.75% bonds due 2018 fell 17.9 points to a record low 17.8 Tuesday and its 8.875% bonds due 2019 fell 11.5 points to a record low 18.3.

Bloomberg News
May 31, 2016, 08:41:27 GMT

Reporting by Denise Wee; Editing by Andrew Monahan