Kiani Kertas' debts to be restructured<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nexpects to complete restructuring the debts of PT Kiani Kertas, a
\npulp manufacturer owned by Mohamad \"Bob\" Hasan, within six
\nmonths.<\/p>\n
IBRA official Ronald Sinaga said on Tuesday afternoon Kiani
\nKertas' debts were the most difficult to restructure among 15
\nindebted companies partly owned by Bob Hasan which had fallen
\nunder the agency's control. He said the difficulty arose because
\nthe company owed over US$110 million to foreign creditors, led by
\nJapan's Sumitomo.<\/p>\n
\"We expect the debt restructuring of Kiani Kertas to be
\ncompleted in six months time from December. We have talked this
\nover with the foreign creditors,\" Sinaga said.<\/p>\n
Kiani owes some Rp 2.5 trillion ($357 million) in
\nnonperforming loans, which IBRA took over from recapitalized or
\nclosed banks.<\/p>\n
Sinaga said JP Morgan had been appointed the company's
\nfinancial adviser and was expected to come up with an initial
\ndebt restructuring proposal next week.<\/p>\n
He also said Ernst & Young had been appointed to audit Kiani's
\nplants.<\/p>\n
Sinaga said restructuring Kiani's debts was a slow process in
\npart because its plants suffered technical troubles.<\/p>\n
Sinaga said restructuring the debts of the other companies
\npartly owned by Bob Hasan would take little time because they did
\nnot have any debts to foreign creditors.<\/p>\n
Bob Hasan's 15 companies have debts totaling $487.3 million
\nand Rp 1.22 trillion, all of which was taken over by IBRA.<\/p>\n
Irwan Siregar of IBRA said 14 of the companies had signed
\nletters of commitment to restructure their debts.<\/p>\n
Only gas container manufacturer PT Kemgas Tama was
\nuncooperative, Siregar said, adding that the company was now in
\nthe process of being liquidated.<\/p>\n
Kemgas has debts of some Rp 23.45 billion.<\/p>\n
Siregar said the 15 indebted companies partly owned by Bob
\nHasan, a long-time golfing partner of former president Soeharto,
\nwere divided into two groups: the Nusamba Group and the forestry
\ndivision.<\/p>\n
Bob Hasan owned some 20 percent of the companies in the
\nNusamba Group, while the remaining shares were held by three
\nfoundations controlled by Soeharto, he said.<\/p>\n
Siregar said restructuring the debts of the Nusamba companies
\nwas slow because the three foundations had been handed over to
\nthe coordinating minister for people's welfare and poverty
\nalleviation.<\/p>\n
Sinaga added that the forestry division had 13 companies,
\nincluding Kiani Kertas and plywood producer PT Kalimanis Plywood
\nIndustries.<\/p>\n
He said the economic crisis adversely affected these two
\ncompanies, which impacted negatively on the 11 supporting firms
\nin the forestry division.<\/p>\n
Sinaga added that the main problem of the plywood mills in the
\nforestry division was their heavy debt burdens. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kiani-kertas-debts-to-be-restructured-1447893297",
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