Anwar Sierad needs more time for debt deal<\/p>\n
JAKARTA (JP): In an effort to avoid being declared bankrupt,
\npublicly listed Anwar Sierad asked the Jakarta Commercial Court
\non Monday to grant an extra 45 days for the company to continue
\nnegotiations with its creditors, a lawyer said.<\/p>\n
Marselina Simatupang of Lucas and Partners, representing one
\nof the creditors, added that the court would decide on Thursday
\nwhether to grant the request.<\/p>\n
\"This is not the right legal procedure based on the 1998
\nBankruptcy Law. Anwar Sierad should seek approval from the
\nmajority of creditors for an extension, not from the court,\" she
\nsaid.<\/p>\n
She said Anwar Sierad had failed to reach a debt restructuring
\ndeal with its creditors by Monday's deadline, thus it should be
\ndeclared bankrupt unless the majority of creditors vote
\notherwise.<\/p>\n
\"The creditors do not understand what is going on. We though
\nwe were in court today to vote as stipulated in the Bankruptcy
\nLaw,\" she complained.<\/p>\n
Anwar Sierad was expected to complete the restructuring of its
\nUS$160 million debt within seven and a half months starting from
\nSeptember as part of the court's suspension of payment (PKPU)
\nprocedure.<\/p>\n
The seven-and-a-half-month period elapsed on Monday without a
\ndebt restructuring agreement between Anwar Sierad and its
\ncreditors.<\/p>\n
A suspension of payment request, according to the Bankruptcy
\nLaw, allows a company facing a bankruptcy suit to postpone the
\nsuit by filing a PKPU request with the court, subject to the
\nmajority of creditors' approval.<\/p>\n
In the suspension of payment procedure, the time given to a
\ncompany to negotiate a debt restructuring deal with its creditors
\ncan be extended to a total of 270 days.<\/p>\n
If the suspension of payment period ends without a debt
\nrestructuring deal in place, by law the borrower is automatically
\ndeclared bankrupt.<\/p>\n
Anwar Sierad's finance director Awi Tantra was earlier
\nreported as saying the company had a debt restructuring proposal
\nwhich involved a combination of a debt-to-equity swap (70 percent
\nof total debts) and debt rescheduling (30 percent).<\/p>\n
The debt restructuring proposal, according to the law, has to
\nbe approved by two-thirds of the total of creditors, which
\nrepresent at least 50 percent of the total value of the debts.<\/p>\n
The company's five biggest creditors representing 50 percent
\nof its total debts are the Indonesian Bank Restructuring Agency
\n(IBRA), PT Rabobank Duta Indonesia and Rabobank Asia of Singapore
\nbranch, the Deutsche Bank AG of Germany and Hongkong Shanghai
\nBanking Corporation.<\/p>\n
Anwar Sierad -- 50.01 percent owned by PT Sietek Nusantara
\nFinance and the rest by the investing public -- is involved in
\nchicken hatcheries, producing chicken feed and trading in poultry
\nfarm equipment. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/anwar-sierad-needs-more-time-for-debt-deal-1447893297",
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