Marubeni, IBRA sign MOU on Chandra Asri's debt plan<\/p>\n
TOKYO (Dow Jones): Marubeni Corp. said Tuesday it has signed a
\nmemorandum of understanding with the Indonesian Bank
\nRestructuring Agency (IBRA) on a debt restructuring plan for PT
\nChandra Asri Petrochemical Center, in which the two parties are
\ncreditors.<\/p>\n
Under the agreement, IBRA will take a 80 percent stake in PT
\nChandra Asri by converting all of its US$460 million investment
\nto equity, while Marubeni will take a 20 percent stake by
\nconverting $100 million, part of its loan, to equity.<\/p>\n
Marubeni expects to be repaid the remainder of its investment
\nover the next 12 years, it said.<\/p>\n
A Marubeni spokesman wasn't immediately available for comment,
\nbut people familiar with the negotiations said last month that
\nthe Japanese trading house had invested a total $723 million in
\nthe ailing petrochemical giant.<\/p>\n
Following the planned financial restructuring, PT Chandra Asri
\nwill boost the capacity of its naphtha cracker to 560,000 tons a
\nyear from the current 510,000 tons by revamping existing
\nfacilities, Marubeni said in a statement.<\/p>\n
PT Chandra Asri's olefin center, including the naphtha
\ncracker, in West Java, Indonesia, came onstream in 1995.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/marubeni-ibra-sign-mou-on-chandra-asris-debt-plan-1447893297",
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"sponsor": "Okusi Associates",
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