Creditors agree to reschedule debts<\/p>\n
JAKARTA (JP): PT Intraco Penta said on Friday that most of its
\n14 foreign and local creditors had agreed to reschedule their
\ndebts to the publicly listed heavy equipment supplier.<\/p>\n
Intraco's finance director, Petrus Halim, said the debt
\nrestructuring agreement with the local and foreign banks would be
\nsigned here on Monday.<\/p>\n
\"In principle, the banks are willing to restructure company
\ndebt for up to five years, with two a year grace period, while
\nseveral creditors are considering giving us reductions of up to
\n60 percent,\" he said following the company's shareholder meeting.<\/p>\n
According to the financial report completed in December 1998,
\nthe company had short-term and long-term liabilities of Rp 229.35
\nbillion and Rp 197.59 billion, respectively. They included Rp
\n167.08 billion and Rp 188.58 billion in short-term and long-term
\nbank loans.<\/p>\n
Petrus said shareholders agreed in the meeting to use the
\ncompany's assets as collateral to secure the loans.<\/p>\n
He said the company, which booked a net loss of Rp 15.44
\nbillion in 1998 as compared to net profit of Rp 2.23 billion in
\n1997, would not pay dividend to shareholders.<\/p>\n
Intraco's business covers the sale and rental of heavy
\nequipment and spare parts for companies dealing in oil and gas,
\npulp and paper, forestry, agribusiness and mining industries, as
\nwell as repair and maintenance services.<\/p>\n
The company's total sales fell by 6.5 percent to Rp 196
\nbillion in 1998, from Rp 210 billion in 1997, but the sharp
\nincrease in interest payments and foreign exchange losses put the
\ncompany deeper into the red.<\/p>\n
Petrus attributed the fall in sales to the drop in the demand
\non heavy equipment from customers whose business had mostly been
\neffected by the country's economic crisis.<\/p>\n
The company sold only 44 units of heavy equipment last year,
\ncompared to around 500 units yearly before the economic crisis,
\nhe said.<\/p>\n
\"However, with the debt restructuring program and upbeat
\nprediction in the recovery of forestry and mining sectors, we
\nhope to record more profit this year,\" Petrus said.<\/p>\n
He said that according to industry estimates, the mining
\nsector, which contributed about 70 percent of Intraco's business
\nin 1998, will experience more the two-fold growth in 1999.<\/p>\n
He said Intraco sold 30 units of heavy equipment worth around
\nUS$6 million in the first quarter to March this year.<\/p>\n
The company expected to book a total sales revenue of Rp 212
\nbillion with pre-tax profits of Rp 21.9 billion for 1999, he
\nadded.<\/p>\n
Intraco is controlled by PT Shalumindo Investama with 36.58 a
\npercent stake, PT Spallindo Adilong 29.46 percent, Alamsyah 6.47
\npercent, PT Malinda Graha 3.79 percent and the public 23.70
\npercent. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/creditors-agree-to-reschedule-debts-1447893297",
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