Bhuwanatala ready to settle debts to IBRA<\/p>\n
JAKARTA (JP): Publicly listed property company Bhuwanatala
\nIndah Permai Tbk (BIP) is offering a debt-to-equity swap to settle
\nits Rp 368 billion (about US$43 million) debt with the Indonesian
\nBank Restructuring Agency (IBRA).<\/p>\n
The company's director, Cahyo Purnomo, said here on Thursday
\nthe swap was one of several debt settlement alternatives proposed
\nto IBRA.<\/p>\n
The other options, he said, included rescheduling the maturity
\nof the company's debts to seven years and the issuance of
\nconvertible bonds to the agency.<\/p>\n
He said IBRA was conducting a due diligence on the company's
\nassets and performance before responding to the proposal.<\/p>\n
\"We need to extend the maturity of our debts to seven years to
\nenable the company to maintain its cash flow,\" he said during a
\nmedia conference.<\/p>\n
Bhuwanatala, which owns and operates Hyatt Regency Hotel and
\nBandung Indah Plaza, office buildings and retail outlets, owes Rp
\n368 billion and $1.8 million to IBRA.<\/p>\n
The agency took over the debts from several closed banks --
\nBank Pelita, Bank Tiara and Bank Alfa -- and the recapitalized
\nBank Duta.<\/p>\n
In addition, the company also owes $40 million in dollar-
\ndenominated loans to a syndicate of international banks led by
\nJapan's Sumitomo Bank.<\/p>\n
Regarding its debt to these international creditors, Cahyo
\nsaid the company did not propose any debt rescheduling but asked
\nthe creditors to lower the interest rates on the loans to between
\n2 percent and 3 percent from between 5 percent and 6 percent.<\/p>\n
\"Sumitomo promised to consider our offering, but IBRA has not
\ngiven a response since the agency is still doing a due
\ndiligence, which is supposed to be finished later this month,\"
\nsaid the company's finance manager, Tri Haryati. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bhuwanatala-ready-to-settle-debts-to-ibra-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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