IFC will retructure loans to Hotel Santika Nusajaya<\/p>\n
JAKARTA (JP): The International Finance Corporation has agreed
\nto restructure the debt of PT Hotel Santika Nusajaya, the
\nproperty division of media giant Kompas Gramedia Group.<\/p>\n
The IFC -- the private investment arm of the World Bank --
\nsaid in a statement released Thursday in Washington that the debt
\nrestructuring should \"help Hotel Santika Jakarta to recover from
\nthe crisis with improved debt servicing capability.\"<\/p>\n
Sami Haddad, IFC associate director for South and Southeast
\nAsia, said in the statement that the deal should strengthen Hotel
\nSantika's financial position \"enabling it to better withstand the
\ncurrent economic crisis and lead the way to similar
\nrestructurings of other sound companies, a key to the recovery of
\nIndonesia's corporate sector.\"<\/p>\n
Hotel Santika Nusajaya is owned by PT Grahawita Santika, a
\nhotel chain established in 1981 that operates nine hotels in
\nIndonesia, including four-star Hotel Santika Jakarta on Jl. K.S.
\nTubun, Central Jakarta.<\/p>\n
Hotel Santika Nusajaya obtained in 1996 US$27 million in loans
\nfrom IFC and other international lenders to build Hotel Santika
\nJakarta.<\/p>\n
Of this $27 million, IFC provided $14 million with a 10-year
\nmaturity, the Asian Finance and Investment Corporation -- an
\naffiliate of the Asian Development Bank -- gave $3 million with
\nan eight-year maturity.<\/p>\n
Other creditors -- Deutsche Investitions und
\nEntwicklungsellschaft GmbH of Germany and the Nederlanse
\nFinanciering-Maatschappij Voor N.V. of the Netherlands --
\nprovided $5 million each.<\/p>\n
The deal marks a breakthrough of sorts for the IFC, which has
\na $1 billion investment portfolio in Indonesia, currently spread
\nover 42 companies. The portfolio consists of $150 million in
\nequity investment and $850 million in debt financing.<\/p>\n
Out of the $850 million debt, only about $350 million comes
\ndirectly from IFC's own pocket -- the rest is in loans made by
\ncommercial banks in IFC's name.<\/p>\n
According to Dow Jones Newswires, IFC believes about $100
\nmillion to $150 million of its debt financing extended to
\nIndonesian companies is at risk of not being fully recovered.<\/p>\n
The organization recently suffered a setback in its debt
\nrecovery campaign when the Supreme Court rejected an appeal by
\nthe IFC and other foreign creditors to declare PT Dharmala
\nAgrifood bankrupt, dealing a further blow to the country's
\nstruggling bankruptcy law.<\/p>\n
The IFC together with PT ING Indonesia Bank and Indonesia's PT
\nBank Niaga, filed an appeal petition to the Supreme Court after
\ntheir initial bankruptcy claim against the listed Indonesian
\nagricultural food producer was thrown out by the Jakarta
\nCommercial Court in early December. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ifc-will-retructure-loans-to-hotel-santika-nusajaya-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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