APP creditors say dismayed with talks<\/p>\n
Creditors of troubled Asia Pulp & Paper Co on Thursday called on
\nthe Indonesian-controlled group to show more commitment to
\nrestructuring its massive US$13 billion of debt, in a rare public
\nstatement on the state of negotiations.<\/p>\n
In a short statement sent to the media, the creditors said
\nthey were dismayed at the pace of progress in their private
\nnegotiations with the Indonesian conglomerate.<\/p>\n
\"Particularly disappointing is that APP has apparently not yet
\ncommitted itself to certain fundamental principles that the
\nsteering committee has repeatedly put forward,\" they said.<\/p>\n
Singapore-headquartered APP, the largest pulp and paper group
\nin Asia outside Japan, called a debt moratorium in March 2001 as
\nits operations tottered under the weight of a liquidity crunch,
\nfalling pulp and paper prices and ratings downgrades.<\/p>\n
The statement was issued by the Creditors' Combined Steering
\nCommittee, which had been tight-lipped on ongoing talks.<\/p>\n
The committee gave APP a restructuring plan on May 2 that
\noutlined a set of principles, which included a substantial
\ncontribution by the controlling shareholders to the restructuring
\nexercise, debt-to-equity conversion, adoption of a cash sweep and
\ncash waterfall for the benefit of creditors.<\/p>\n
APP simply indicated it accepted four restructuring
\nprinciples: differentiating debt into core and non-core debt;
\nrestrictions on new debt; a monitoring program and a debt buy-
\nback program. -- Reuters<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/app-creditors-say-dismayed-with-talks-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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