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A financial analyst and Director of Business Operations at Dalex Finance, Joe Jackson, has slammed the Ghana Cocoa Board for badly managing its affairs to the extent of defaulting on its cocoa bills.
COCOBOD on July 14, invited holders of its short-term cocoa bills to exchange them for longer-term securities.
The debt exchange will mean that holders of the short-term securities which will mature in August will have to exchange them for new ones that will begin maturity in 2024.
Joe Jackson noted that this indicates that the government together with COCOBOD is unable to pay its bills.
“This is truly a COCOBOD problem. COCOBOD has badly managed its affairs, and it hasn’t even published its accounts since 2020, and it is the one that took the money supposedly to purchase cocoa but unfortunately doing other things that are not in its original remit,” he was quoted by citinewsroom.com.
Read parts of COCOBOD’s invitation offer below:
COCOBOD is offering Eligible Holders accrued and unpaid interest (“Accrued Interest Payable”) on their Eligible Bills validly tendered and accepted by the COCOBOD, calculated from and including the last interest payment date up to, but excluding, the Settlement Date, which amount will be paid to such Eligible Holders in the form of capitalized interest (rounded down to the nearest GHS1.00) added to the principal amount of the New Bonds and distributed across the New Bonds in the same proportion as the Exchange Consideration Ratios (as defined) set forth in the table below.
Eligible Holders whose validly submitted Offers are accepted by the COCOBOD will receive on the Settlement Date the New Bonds with an aggregate principal amount (rounded down to the nearest GHS1.00) equal to the principal amount of Eligible Bills tendered plus Accrued Interest Payable, which aggregate principal amount will be allocated in accordance with the consideration ratios described in the New Bonds and Exchange Consideration per principal amount of Eligible Bills tendered (including the Accrued Interest Payable in respect thereof).
Eligible Holders whose offers or exchange instructions are accepted will receive the five New Bonds in the above-mentioned ratios, each maturing on a one-per-year basis consecutively from and including 2024 through and including 2028.
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