Creditors approve Astra debt restructuring program<\/p>\n
JAKARTA (JP): Bank creditors and bondholders have approved
\nAstra International's final debt restructuring program presented
\nearly this month, the company's president said on Thursday.<\/p>\n
Rini M.S. Suwandi said the approval was received in reply
\nforms sent to the bank creditors and voting results from the
\ncompany's Rp 400 billion bondholders meeting held here on
\nThursday.<\/p>\n
\"The approval reflects the positive progress on Astra
\nInternational's debt restructuring program that started since
\nAugust 5, 1998, following the economic crisis in the region,
\nincluding Indonesia, affecting the company's performance,\" she
\nsaid after the meeting.<\/p>\n
Rini said about 63.96 percent of the total loans, excluding
\nthe U.S. dollar bondholders, were consented to in the
\nrestructuring program as of Thursday.<\/p>\n
Total bank creditors which have already given their approval
\nreached 95.21 percent of Astra's total bank loans, or 57.58
\npercent from the company's total debts, while current total non-
\nbank loan, including bondholders, reached 6.38 percent of the
\ntotal company debt.<\/p>\n
The Rp 400 billion (US$48 million) bondholders meeting in
\nJakarta was one of four bondholders' meetings held simultaneously
\non Thursday.<\/p>\n
The company also held bondholders meeting for three types of
\nU.S. dollar-denominated bonds totaling $500 million in Singapore.
\nThe three meetings were adjourned until May 14 because the
\nobligatory 75 percent quorum for voting could not be achieved.<\/p>\n
Rini said the company was not surprised by the failure to
\nreach a quorum at the Singapore bondholders meeting citing that
\nfact many bondholders were located in different countries.<\/p>\n
\"The failure to attain a quorum today was simply a technical
\nmatter because it involves tracking down the various bondholders
\nand informing them of this meeting,\"<\/p>\n
\"As of Thursday, the bonds were actively exchanging hands,\"
\nRini said.<\/p>\n
She said under the existing procedure, the next bondholders
\nmeeting in Singapore will only need 25 percent of the bondholders
\nto turn out to meet the quorum obligation.<\/p>\n
Rini said the company was optimistic of meeting the quorum
\nobligation in the next bondholders meeting because the number of
\nbondholders who turned out at the meeting in Singapore reached
\nmore than 25 percent of the total bondholders.<\/p>\n
The company is also optimistic the bondholders will approve
\nthe debt restructuring program after it sounded out the views of
\nthe bondholders who turned out for Thursday's meeting.<\/p>\n
Rini said the company undertook all efforts to reach a
\nunanimous agreement from all the bank creditors and bondholders
\nwith its debt restructuring program.<\/p>\n
\"However, if only a majority vote is achieved, Astra will
\nsubmit the debt composition plan to the (local) commercial court
\nfor ratification which will bind all creditors,\" Rini said.<\/p>\n
Astra, once one of Indonesia's most profitable and well-
\nmanaged conglomerates, was saddled with financial problems
\nfollowing the fall of the rupiah's value in mid-1997.<\/p>\n
Car sales, previously one of its core money earners,
\nsignificantly dropped in 1998 and are expected to decline further
\nin 1999 as Indonesia's economy remains stagnant.<\/p>\n
The company finds it difficult to pay off its debt following
\nthe rupiah's sharp depreciation.<\/p>\n
Total Astra loans under the debt restructuring program,
\nincluding capitalized interest, are $1 billion and Rp 1 trillion,
\nabout 65 percent of which are in the form of bank loans, both in
\nthe U.S. dollar and rupiah, with the remaining in dollar and
\nrupiah-denominated bonds. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/creditors-approve-astra-debt-restructuring-program-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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