Astra fails to hold creditors' meeting<\/p>\n
Dow Jones, Singapore<\/p>\n
PT Astra International Tuesday failed to hold a planned
\ncreditors' meeting to vote on a US$800 million debt restructuring
\nplan for holders of its rupiah-denominated bonds.<\/p>\n
The meeting failed to go ahead in Singapore due to
\ninsufficient attendance by the creditors of the Indonesian
\nautomotive company, Astra Finance Director John Slack said.<\/p>\n
The plan requires approval of at least two-thirds of Astra's
\ncreditors.<\/p>\n
\"We didn't get sufficient lenders to achieve a quorum for the
\nmeeting today, so it was simply adjourned,\" said Slack.<\/p>\n
Slack added he hopes to hold another meeting \"as soon as
\npossible\" and is optimistic that it will take place in December.<\/p>\n
Last week, Astra unveiled the $800 million debt restructuring
\nplan, which includes raising cash through a rights issue and
\nrefinancing almost half of total borrowings.<\/p>\n
Under the plan, Astra will refinance around $400 million to
\n$450 million of the debt through new loans.<\/p>\n
Astra plans to repay $75 million this year, lower than total
\nloans due around $150 million. The company's cash flow is
\ninsufficient to meet its huge debt, most of which it took out in
\nforeign currency before the 1997-98 Asian crisis.<\/p>\n
The company, which is 32 percent owned by Singapore's Cycle &
\nCarriage Ltd., also hopes to raise $100 million to $150 million
\nnext month through a rights issue to help repay debt. Cycle &
\nCarriage has said it will subscribe to its full share of the
\nissue, which would boost its stake to about 40 percent.<\/p>\n
Astra's creditor steering committee is dominated by Japanese
\nbanks.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/astra-fails-to-hold-creditors-meeting-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}