Bakrieland's creditors agree to restructure foreign debt<\/p>\n
JAKARTA (JP): Publicly listed property firm PT Bakrieland
\nDevelopment, a property arm of the Bakrie Group, has successfully
\nrestructured part of its US$15.7 million foreign debt, its
\npresident said yesterday.<\/p>\n
Bambang Irawan Hendradi said South Korean Dong Nam Diamond
\nFinance Company had recently agreed to roll over its $1.4 million
\nloan to his company, due this year, to five years and six years.<\/p>\n
He also said Bakrieland was negotiating for the rescheduling
\nof the remaining $14.3 million debt with other foreign creditors.<\/p>\n
"We hope that we can reschedule the payment of the debts to
\n2003 from 2001 as scheduled originally," he said.<\/p>\n
Bambang said debt restructuring talks with foreign creditors
\nwere expected to bear positive fruit as most creditors understood
\nthe condition of the country's crisis, which has hit most
\ncompanies.<\/p>\n
He said that since bilateral talks with overseas creditors
\nwould bring a positive outcome for the company, it was not
\nnecessary for Bakrieland to join the newly established Indonesian
\nDebt Restructuring Agency (INDRA).<\/p>\n
INDRA, which will begin operations Aug. 3, will help
\nIndonesian cash-strapped companies settle repayment of their
\noffshore debts.<\/p>\n
Bambang said the property firm had Rp 9 billion debt in
\ndomestic Bank Panin.<\/p>\n
"We have also made negotiations with the bank as part of the
\nrestructuring plan."<\/p>\n
Bambang said that as part of the efforts to survive the
\ncountry's worst-ever crisis, the company would also sell several
\nof its subsidiaries, especially those which recorded losses in
\nthe previous year.<\/p>\n
"Selling unprofitable units is part of our efficiency
\nprogram," he said.<\/p>\n
Bambang said the restructuring plan was expected to boost the
\nperformance of the company, which suffered a net loss of Rp 33.18
\nbillion last year, largely due to large foreign exchange losses.<\/p>\n
The company booked operating profits of Rp 7.74 billion last
\nyear, up 177 percent from Rp 2.79 billion in the previous year,
\nhe said.<\/p>\n
He declined to project the company's earning and sales this
\nyear.<\/p>\n
Total assets swelled to Rp 1.11 trillion in 1997 from Rp
\n267.73 billion in 1996.<\/p>\n
Bakrieland acquired assets of its affiliates, PT Krakatau
\nLampung Tourist Development Center, PT Bali Nirwana Resort and PT
\nGraha Andrasentra Propertindo in September last year.<\/p>\n
"The company spent around Rp 469 billion to acquire the
\ncompanies' assets," he said, adding that funds to buy the assets
\nof the three companies were derived from proceeds of the
\ncompany's limited public offering last year. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bakrielands-creditors-agree-to-restructure-foreign-debt-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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