Astra makes headway in restructuring foreign debt<\/p>\n
JAKARTA (JP): The country's largest automaker, PT Astra
\nInternational, announced yesterday that its foreign creditors had
\nagreed to work with the company to restructure its mounting
\nforeign debts.<\/p>\n
Company president Rini M. Soewandi said Astra would hold a
\nmeeting with its foreign creditors in Singapore in early October
\nto discuss details of the debt restructuring plan.<\/p>\n
\"Restructuring our foreign debt is one of our important
\nstrategies in surviving the crisis,\" she said on the sidelines of
\na capital market seminar held here yesterday.<\/p>\n
The company hopes the upcoming meeting will allow it to extend
\nthe maturity of its short-term debts to five years.<\/p>\n
\"We hope the meeting will, for example, extend the maturity of
\nour debts from three years to five years.\"<\/p>\n
Astra International owed a total US$1.2 billion to foreign
\ncreditors and another Rp 2 trillion to domestic financial
\ninstitutions as of the end of July.<\/p>\n
The company appointed Chase Manhattan Bank, Sakura Merchant
\nBank and Sumitomo Bank late last month as its financial advisors
\nto help it restructure its dollar-denominated debts.<\/p>\n
Rini said the company's foreign creditors understood Astra's
\nproblems and hoped they would agree with their debt restructuring
\nproposals.<\/p>\n
\"The crisis has forced us to work with only 10 percent of our
\nnormal production capacity,\" she said, pointing out that Astra's
\nlarge foreign debt would further slash its already depressed
\nearnings this year.<\/p>\n
Rini said the company had also asked its Japanese partners,
\nDaihatsu Motor Co. Ltd. and Isuzu Motor Ltd., to raise their
\nstakes in their joint-venture car manufacturing plant, PT Astra
\nDaihatsu Mobil.<\/p>\n
\"We are in talks with Daihatsu on this, asking them to
\nincrease their stake in the joint venture to around 45 percent
\nfrom 20 percent currently,\" Down Jones Newswires quoted her as
\nsaying.<\/p>\n
Astra Daihatsu Mobil is currently 80 percent owned by Astra,
\nwith the remaining 20 percent controlled by its Japanese
\npartners.<\/p>\n
The company also plans to sell its entire stake in PT Astra
\nMicrotronics Technology (AMT), a Batam island-based producer of
\nsemiconductor products, for $90 million to $95 million to foreign
\ninvestors.<\/p>\n
AMT is 87.74 percent controlled by Astra, the remainder being
\nheld by Astra subsidiary PT Astra Graphia. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/astra-makes-headway-in-restructuring-foreign-debt-1447893297",
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