JIHD to restructure $70m in debts<\/p>\n
JAKARTA (JP): PT Jakarta International Hotels and Development
\n(JIHD) and its creditors signed a deal here on Friday outlining
\nthe restructuring of the company's US$70 million in debts, the
\nhotel operator said on Friday.<\/p>\n
Under the agreement, the company's debts will be extended
\nseven years from the original due date of January 1998, with a
\nfive-year put option.<\/p>\n
\"At the end of the five-year term the parties will have the
\noption of either extending the restructuring term or refinancing
\nthe facility,\" JIHD said in a statement.<\/p>\n
Interest rates for the initial three years of the
\nrestructuring vary from between 4 percent and 6 percent, and will
\nsubsequently revert to the London interbank offered rate and an
\nappropriate margin, it said.<\/p>\n
Throughout the restructuring term, lenders will retain their
\ncollateral, which consists of security over the hotel's assets,
\nincluding the land, improvements, movable equipment and
\nreceivables.<\/p>\n
The agreement was reached after two years of negotiations
\nbetween JIHD's management and the syndicate's lead bank, The
\nRoyal Bank of Scotland Plc in Singapore, following an independent
\naccountant's report prepared by consultancy firm Ferrier Hodgson,
\nit said.<\/p>\n
The debts, which were originally signed in January 1995 and
\nfell due in January 1998, were used to finance renovations for
\nHotel Borobudur.<\/p>\n
The statement said the loan would be serviced from surplus
\ncash derived principally from hotel operations.<\/p>\n
JIHD, listed on the Jakarta Stock Exchange, owns the Hotel
\nBorobudur Jakarta and a property development site in the Central
\nBusiness District on Jl. Sudirman, through its subsidiary PT
\nDanayasa Arthatama. (tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jihd-to-restructure-70m-in-debts-1447893297",
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"sponsor": "Okusi Associates",
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