Debt restructuring of Texmaco, Tirtamas OK'd<\/p>\n
JAKARTA (JP): The Financial Sector Policy Committee (FSPC)
\nsaid on Tuesday that it had approved a proposal to restructure
\nthe debt of the giant Texmaco and Tirtamas groups.<\/p>\n
The FSPC said in a press statement that under the two-stage
\nrestructuring plan proposed by the Indonesian Bank Restructuring
\nAgency (IBRA), Texmaco's debt to IBRA would be transferred into a
\nnew holding company which later on would issue exchangeable bonds
\nto the agency.<\/p>\n
IBRA can then sell the exchangeable bonds in the secondary
\nmarket or exchange it with the assets under the holding company
\nwhen the bonds mature.<\/p>\n
There were no details about the bond structure.<\/p>\n
"The second stage is to restructure the debt of each (Texmaco)
\nsubsidiary," FSPC said.<\/p>\n
The committee also said that under the plan, Texmaco would
\nsurrender collaterals such as land and building, machinery,
\nreceivables and inventories and stocks, including a personal
\nguarantee.<\/p>\n
IBRA chairman Cacuk Sudarijanto said late on Monday the
\nrestructuring plan would result in the government owning 70
\npercent of the holding company while the remaining 30 percent
\nwould be in the hands of Texmaco founder Marimutu Sinivasan.<\/p>\n
A similar restructuring plan would also be applied to the
\nTirtamas group, although the ownership of IBRA in this holding
\ncompany has yet to be decided, FSPC said.<\/p>\n
The FSPC groups several senior economics ministers led by
\nCoordinating Minister for the Economy Rizal Ramli. The committee
\nhas the final say on IBRA's major restructuring or asset disposal
\nprograms.<\/p>\n
Texmaco is an integrated textile company. The group is the
\nlargest debtor of IBRA as 16 of its subsidiaries owe a combined
\nRp 16.5 trillion to the agency.<\/p>\n
IBRA took over Texmaco's debt to domestic banks.<\/p>\n
Rizal said on Tuesday that the restructuring plan for Texmaco
\nwas not a government bailout for the private sector.<\/p>\n
"It is not a bailout. It's a restructuring plan in which the
\nTexmaco founder has finally agreed to allow the government to
\nhave a 70 percent stake compared to around 50 percent
\npreviously," Rizal told reporters after a meeting with the House
\nof Representatives Speaker Akbar Tandjung.<\/p>\n
Tirtamas, a diversified conglomerate with interests in cement,
\npetrochemicals and finance, is also another of IBRA's major
\ndebtor with total debt of more than Rp 2.2 trillion. The group is
\ncontrolled by Hashim Djojohadikusumo.<\/p>\n
Restructuring the debt of IBRA's huge debtors is key to
\nhelping the country recover from its current economic troubles.<\/p>\n
The FSPC also said that it had approved the plan to
\nrestructure some US$628.4 million debt of paper concern PT Kiani
\nKertas which is owed by tycoon Mohamad "Bob" Hasan, the long-time
\ngolfing partner of former president Soeharto.<\/p>\n
The committee said that under the plan, the sustainable
\nportion of the debt amounting to $226.5 million would be
\nstretched into a 10-year term loan with a grace period of two
\nyears and at an interest rate of 12 percent.<\/p>\n
It said that $246.6 million of the unsustainable portion would
\nbe converted into mandatory convertible bonds while the remaining
\n$5.6 million would be restructured through a debt to equity swap.<\/p>\n
Elsewhere, the FSPC approved IBRA's plan to extend the
\nrepayment period of Sinar Mas group's debt to its financial unit
\nBank Internasional Indonesia (BII) until September 2003.<\/p>\n
The committee has also agreed for IBRA to pay Rp 591 billion
\nin eligible inter-bank claims to BII and swap the ineligible
\ninter-bank claims with the restructured loans under IBRA.<\/p>\n
But the FSPC said that the Sinar Mas group was required to
\nrepay 20 percent of the ineligible claims in cash. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/debt-restructuring-of-texmaco-tirtamas-okd-1447893297",
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