Marubeni's debt restructuring plan rejected<\/p>\n
JAKARTA (AFP): The Indonesian government has rejected a
\nproposal by Japan's Marubeni Corp to become the single creditor
\nin a debt restructuring deal for petrochemicals company PT
\nChandra Asri, an official said Tuesday.<\/p>\n
\"They (Marubeni) want to be the single creditor, but we can't
\naccept that,\" said Safrudding Tumenggung, secretary of the
\nFinancial Sector Policy Committee (KKSK), a government body
\ntasked with reviewing the policies of the Indonesia Bank
\nRestructuring Agency (IBRA).<\/p>\n
Tumenggung said the proposal would expose IBRA to a larger
\nthan planned debt-to-equity swap, suggesting that as a mere
\nshareholder IBRA would lose strategic control over the
\npetrochemical plant.<\/p>\n
IBRA and a number of foreign financial institutions grouped in
\na consortium led by Marubeni, which is a part owner of the joint-
\nventure olefins company, are the major creditors of Chandra Asri.<\/p>\n
They have respective loan exposures of Rp 3 trillion (US$288.5
\nmillion) and $700 million to Chandra Asri.<\/p>\n
Talks on the Chandra Asri debt restructuring deal have dragged
\non among creditors, with no proposal yet acceptable to both
\nMarubeni and IBRA.<\/p>\n
\"We are still negotiating,\" Tumenggung added.<\/p>\n
An IBRA source said Marubeni was reluctant to take too large a
\nportion of the debt-to-equity swap, as it will effectively hold a
\nsignificant equity stake in Chandra Asri, which would mean the
\nJapanese firm would have to provide extra cash for such a high
\nrisk investment.<\/p>\n
The source said IBRA chairman Edwin Gerungan has been under
\nsignificant pressure from outside IBRA to agree to an alternative
\ndebt restructuring scheme, which would bar Marubeni from taking a
\nsignificant portion of Chandra Asri's equity, thus transferring
\nall the burden to IBRA instead.<\/p>\n
\"Gerungan has told us that he would rather resign than sign
\nsuch an imbalanced debt restructuring deal as proposed by
\nMarubeni,\" the source added.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/marubenis-debt-restructuring-plan-rejected-1447893297",
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