Chandra Asri deal not fair: Committee<\/p>\n
JAKARTA (JP): The oversight committee of the Indonesian Bank
\nRestructuring Agency (IBRA) said that the restructuring scheme of
\npetrochemical firm PT Chandra Asri Petrochemical Center was
\nadvantageous to the firm's Japanese lenders but disadvantageous
\nto IBRA.<\/p>\n
Oversight committee chairman Mar'ie Muhammad said in a press
\nconference that the committee had reviewed the restructuring
\nschemes of IBRA's 32 debtors, of which four, including that of
\nChandra Asri, had been completed.<\/p>\n
The committee published on Thursday the result of its review
\nas demanded by the International Monetary Fund. It is soon
\nexpected to publish further review results.<\/p>\n
The various debt restructuring schemes were approved by the
\nprevious members of the Financial Sector Policy Committee (FSPC),
\nwhich groups several senior economic ministers.<\/p>\n
The oversight committee said that the restructuring of Chandra
\nAsri debts had been carried out without following the guidelines
\nset by the FSPC itself.<\/p>\n
Under the restructuring scheme, Japanese lenders, led by
\nMarubeni Corp., would convert US$100 million of their $723
\nmillion loans into 20 percent equity in Chandra Asri, while IBRA
\nwould convert $413 million of its $464 million into a 31 percent
\nstake, with the remaining 49 percent to be held by founder
\nPrajogo Pangestu.<\/p>\n
"IBRA would have maintained a sustainable loan of $263 million
\nas compared with $50 million under the FSPC scheme," the
\noversight committee said.<\/p>\n
It said that despite IBRA converting 89 percent of its debt
\nand Japanese lenders converting 14 percent of theirs, Japanese
\nownership was diluted by only 3.8 percent from 23.8 percent.<\/p>\n
It added that IBRA's recovery was possibly more likely from
\nliquidating or selling the company than by maintaining Chandra
\nAsri as a going concern.<\/p>\n
"Looking at it from a purely commercial basis, the
\nrestructuring scheme is clearly disadvantageous to IBRA and
\nadvantageous to Marubeni," the committee said.(rbw)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/chandra-asri-deal-not-fair-committee-1447893297",
"image": ""
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