FSPC approves debt restructuring for four companies<\/p>\n
JAKARTA (JP): The Financial Sector Policy Committee (FSPC) has
\napproved the debt restructuring of three companies proposed by
\nthe Jakarta Initiative Task Force (JITF), and one company
\nproposed by the Indonesian Bank Restructuring Agency (IBRA).<\/p>\n
The FSPC said in a statement issued on Friday that it had
\napproved the debt restructuring of the publicly listed
\nmanufacturer of electrical and telecommunications cable PT Voksel
\nElectric, polyester maker PT Polysindo Eka Perkasa, and textile
\nproducer PT Texmaco Jaya.<\/p>\n
\"These restructurings mediated by the JITF represent a
\nsignificant contribution to meeting the government's
\nrestructuring targets for 2001,\" FSPC said.<\/p>\n
The FSPC groups several senior economic ministers, and
\noversees the country's major bank and corporate restructuring
\nprogram.<\/p>\n
The JITF is a government-sponsored agency formed in 1998 to
\nhelp accelerate the debt restructuring of the country's private
\nsector by playing a mediator role.<\/p>\n
According to last year's government letter of intent to the
\nInternational Monetary Fund, the task force is targeted to be
\nable to restructure a total of US$ 12 billion in corporate
\noverseas debt by April 2001. So far it has restructured more
\nthan $9 billion debt.<\/p>\n
The restructuring of the country's massive corporate overseas
\ndebt is a key to help revive investors confidence in the economy.<\/p>\n
FSPC said that Voksel would see its $8.6 million debt divided
\ninto two tranches.<\/p>\n
\"The first tranche requires the rescheduling of (debt) payment
\namounting to $4.3 million through 2008. The second tranche
\nrequires the issuance of $4.3 million in convertible and straight
\nbonds,\" the committee said.<\/p>\n
It also said that Texmaco Jaya and Polysindo Eka Perkasa --
\nunits of the Texmaco group conglomerate -- would be merged and
\ntheir combined debts would be restructured via secured bonds and
\ndebt-to-equity swap.<\/p>\n
The FSPC did not state the amount of debt of the two units,
\nbut recent reports said that the two companies had earlier agreed
\nin principle with secured creditors to restructure around $1.3
\nbillion in debt.<\/p>\n
\"The debt restructuring mediated by the JITF is a workable
\noption for other creditors to consider,\" FSPC said.<\/p>\n
Elsewhere, the committee said that the restructuring of some
\n$161.5 million debt owed by PT Permadani Khatulistiwa Nusantara
\n(PKN), which owns Jakarta's five-star Regent Hotel, to IBRA had
\nalso been approved.<\/p>\n
The committee said that the debt would be settled in three
\ntranches including cash payment, debt-to-equity arrangement, and
\nsecured convertible bonds mechanism.<\/p>\n
\"This restructuring will give IBRA a 51 percent ownership of
\nthe company,\" FSPC said, adding that exact terms and conditions
\nwould be finalized soon.<\/p>\n
The board of commissioners of PKN includes prominent figures
\nsuch as former minister Fahmi Idris, and businessmen Soegeng
\nSarjadi and Bambang Hendrajatin.<\/p>\n
PKN initially owed the debt to local banks, but after the debt
\nturned sour, IBRA took it over from the banks.<\/p>\n
The agency is mandated to restructure and recover some Rp 260
\ntrillion of bad debts transferred from ailing and domestic banks
\nwhich have been closed. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fspc-approves-debt-restructuring-for-four-companies-1447893297",
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