The largest palm plantation company in the
This change is part of a restructuring plan to save PHC from bankruptcy. As the single source of employment, healthcare, and infrastructure in remote areas of the DRC, preserving the company is crucial for the communities depending on it.
PHC has been making losses for several years due to unfavourable palm oil prices, a need for operational improvements and a very challenging operating environment. Over the last few years, the two major shareholders of
It has now become clear that both PHC's operations as well as its balance sheet need to be restructured for the company to remain viable. This requires a commitment of
For FMO it was particularly important that the following conditions were included in the debt restructuring plan: The ongoing Independent Complaints Mechanism (ICM) mediation process, for those communities that have expressed concerns about PHC, continues with the support of KKM, CDC, DEG, BIO and FMO.
ESG (Environmental, Social and Governance) spending, and ongoing improvement of and attention for ESG standards - to improve working conditions, enhance the local environment and provide education and medical facilities will be maintained by KKM and be independently audited to ensure agreements made are seen through.
KKM will inject the necessary capital to keep PHC operational on the short term and it will improve PHC's operations to make it more financially sustainable.
These conditions have been included and agreed by all parties involved. Although the debt restructuring plan will incur losses on our investment, FMO is relieved that immediate bankruptcy is avoided and that ESG-related agreements can be seen through.
KKM will continue the conversations with the local communities in Boteka, Yaligimba and Lokutu and is committed to further improve PHC's Environmental and Social standards. As before, progress will continue to be audited on an annual basis by an independent E&S advisor, commissioned by the lenders.
Contact:
Anneloes Roeleveld
Tel: +31 70 314 9357
Email: A.Roeleveld@fmo.nl
(C) 2020 Electronic News Publishing, source