CPC to convert debt to equity, Thursday March 31, 2011, pg 61
SHAREHOLDERS of Cocoa Processing Company (CPC) Limited passed a resolution at the company’s 2010 Annual General Meeting (AGM) to convert $14,087,120, which is part of its indebtedness to the Ghana Cocoa Board, to equity to recapitalise the company.
The move, according to the Chairman of the Board of Directors, Mr Jacob S. Arthur, is expected to have a “significant and positive impact on the company’s liquidity”.
In his statement to shareholders, he said the balance of the debt of US$32,002,146 had been rescheduled to be repaid over a 10-year period at concessionary interest rate.
He noted that the year under review was a challenging one as a greater part of the year was devoted to completing the installation of complementary machinery at one of the company’s factories.
The rehabilitation, he stated was necessary to bring the factory up to modern industry standard after more than 40 years of existence without any major rehabilitation.
He mentioned factors including the shortage in the supply of cocoa beans coupled with frequent power outages and disruptions in water to the factory, as well as the astronomical increase in the cost of utility rates of over 100 per cent as having impacted negatively on the overall productivity, and for that matter, the profitability of the company.
Touching on the company’s performance in the year under review, he said the company registered a net loss of GH¢12, 525, 392 as against GH¢17,828,060 in 2009 while its turnover was GH¢84, 127,817 as against GH¢45,541,422 in 2009.
The company’s total assets in 2010 stood at GH¢187,651,883 while its liabilities under the period was at GH¢187,496,659 with total equity and liabilities standing at GH¢187,651 883.
While the company’s current liabilities exceeded its current assets by GH¢12.6 million, its total assets exceeded liabilities by GH¢0.2 million at the year-end.
He said to improve the fortunes of the company; management had reviewed the company’s operation and management 10-year business and strategic plans.
“These plans hold the key to your company’s accelerated recovery,” Mr Arthur told the share holders adding that the company had received assurances from the Ghana Cocoa Board of a regular supply of cocoa beans to ensure that the company’s three factories operated throughout the year.
Giving an outlook of the company’s operations in the 2010/2011 production year, the Managing Director of the company, Mr Richard Armah Tetteh, said the company had begun the extension of a dedicated medium tension electricity supply line to the factory
.
This, he noted was to ensure that the company minimised the interruptions to electricity supply and the intermittent power fluctuations.
He said the company’s 10-year strategic plan identifies and addresses the challenges facing the company and set out the strategies for repositioning the company to enable it improve on profitability and its ability to create shareholder wealth.
The move, according to the Chairman of the Board of Directors, Mr Jacob S. Arthur, is expected to have a “significant and positive impact on the company’s liquidity”.
In his statement to shareholders, he said the balance of the debt of US$32,002,146 had been rescheduled to be repaid over a 10-year period at concessionary interest rate.
He noted that the year under review was a challenging one as a greater part of the year was devoted to completing the installation of complementary machinery at one of the company’s factories.
The rehabilitation, he stated was necessary to bring the factory up to modern industry standard after more than 40 years of existence without any major rehabilitation.
He mentioned factors including the shortage in the supply of cocoa beans coupled with frequent power outages and disruptions in water to the factory, as well as the astronomical increase in the cost of utility rates of over 100 per cent as having impacted negatively on the overall productivity, and for that matter, the profitability of the company.
Touching on the company’s performance in the year under review, he said the company registered a net loss of GH¢12, 525, 392 as against GH¢17,828,060 in 2009 while its turnover was GH¢84, 127,817 as against GH¢45,541,422 in 2009.
The company’s total assets in 2010 stood at GH¢187,651,883 while its liabilities under the period was at GH¢187,496,659 with total equity and liabilities standing at GH¢187,651 883.
While the company’s current liabilities exceeded its current assets by GH¢12.6 million, its total assets exceeded liabilities by GH¢0.2 million at the year-end.
He said to improve the fortunes of the company; management had reviewed the company’s operation and management 10-year business and strategic plans.
“These plans hold the key to your company’s accelerated recovery,” Mr Arthur told the share holders adding that the company had received assurances from the Ghana Cocoa Board of a regular supply of cocoa beans to ensure that the company’s three factories operated throughout the year.
Giving an outlook of the company’s operations in the 2010/2011 production year, the Managing Director of the company, Mr Richard Armah Tetteh, said the company had begun the extension of a dedicated medium tension electricity supply line to the factory
.
This, he noted was to ensure that the company minimised the interruptions to electricity supply and the intermittent power fluctuations.
He said the company’s 10-year strategic plan identifies and addresses the challenges facing the company and set out the strategies for repositioning the company to enable it improve on profitability and its ability to create shareholder wealth.
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