FSPC approves IBRA deal with Tirtamas<\/p>\n
JAKARTA (JP): The Financial Sector Policy Committee (FSPC)
\nannounced that it had approved the debt restructuring plan of PT
\nTirtamas Majutama and its subsidiaries.<\/p>\n
FSPC said here on Wednesday that under the plan, the
\nIndonesian Bank Restructuring Agency (IBRA) would control a 70
\npercent stake in Newco, a company established to settle debts
\nowed by Tirtamas and its subsidiaries to the agency.<\/p>\n
The remaining 30 percent will be held by Honggo Wendratno and
\nhis company PT Silakencana Tiralestari.<\/p>\n
Tirtamas, a diversified conglomerate with interests in cement,
\npetrochemicals and finance, is one of IBRA's major debtors with
\nover Rp 2.2 trillion (about US$200 million) in debts. The group
\nis controlled by Hashim Djojohadikusumo.<\/p>\n
Under Tirtamas' debt restructuring plan, Newco will hold a 70
\npercent stake in PT Trans Pacific Petrochemicals Indotama, an 80
\npercent stake in PT Polytama Propindo and 50 percent stakes in
\nboth PT Petro Oxo Nusantara and PT Pacific Fibertama.<\/p>\n
The plan allows Newco to ask Tirtamas for additional assets
\nshould IBRA deem the already promised assets insufficient to meet
\nTirtamas's obligations.<\/p>\n
Tirtamas itself will remain a holding company controlling all
\nunits other than its petrochemical subsidiaries.<\/p>\n
IBRA will maintain its control over Tirtamas' performance by
\nplacing representatives in the holding company.<\/p>\n
The debt restructuring plan also requires IBRA to hand over
\nTirtamas' accounts receivable, claims and asset guarantees to
\nNewco.<\/p>\n
Newco in turn will issue bonds to IBRA in the value of the
\nTirtamas assets it receives from the agency.<\/p>\n
Tirtamas' founding shareholders will remain responsible for
\nthe repayment of the group's debt to Newco. This requires the
\nshareholders not only to pledge their shares in Tirtamas to
\nNewco, but also to control the group's cash flow to ensure it is
\ncapable of repaying the debt.<\/p>\n
This will allow Newco to receive debt payments from Tirtamas'
\ncash flow, dividends and from the proceeds of its asset sales.<\/p>\n
Under the debt deal, IBRA has the right to seize the personal
\nassets of Tirtamas' founding shareholders until they have
\ncompleted paying all of its debts to IBRA and Newco.<\/p>\n
IBRA's stake in Tirtamas through Newco requires a "clear-and-
\nfree" asset transfer from the group to Newco, and an early debt
\nrestructuring deal with creditors of these units to be
\ntransferred to Newco.<\/p>\n
FSPC also requires IBRA to settle Tirtamas' obligations to its
\ncontractors on several of the group's unfinished projects.<\/p>\n
The FSPC groups several senior economic ministers led by
\nCoordinating Minister for the Economy Rizal Ramli. The committee
\nhas the final say on IBRA's major restructuring and asset
\ndisposal programs.<\/p>\n
The committee approved a debt restructuring deal for the
\nTirtamas group last year, but IBRA's ownership in the holding
\ncompany had not been decided at that time.(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fspc-approves-ibra-deal-with-tirtamas-1447893297",
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"sponsor": "Okusi Associates",
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