TCL announces debt restructuring procedure

In Trinidad Cements Limited`s published interim financial statements for the nine months ended September 30, 2010, shareholders and other stakeholders were advised that the Group was undertaking a debt restructuring exercise.

The exercise is being undertaken to allow the Group`s operations to be funded from the lower income stream resulting from the severe effect of the current economic decline in all the markets. The approach being taken to the exercise is as follows:

A Creditor Committee comprising large domestic and international institutional lenders representing 75% of the TCL Group`s total debt, has been established.

- Hiring of an independent advisor to the Committee to assess the cash generating capability, operations and structure of the TCL Group.

- TCL, the Committee, and the advisor, to discuss a revised business plan and to negotiate a restructuring of the company`s debt portfolio.

- TCL, in coordination with the Committee along with its advisor, will present for approval the debt restructure plan to its lenders and investors.

It is expected that this exercise will continue until the debts are restructured, during which time the Group will declare a moratorium on debt service payments (both principal and interest) in order to preserve cash to sustain operations. This approach was approved by the Board of TCL at a meeting held on January 14, 2011, and is fully supported by the major lenders since it will facilitate the TCL Group`s efforts to sustain itself and its operations over the current low level of the economic cycle.