Newco to issue Rp 29t in bonds<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
PT Newco, a holding company set up to restructure Texmaco
\nGroup's huge debts to the Indonesian Bank Restructuring Agency
\n(IBRA), will issue exchangeable bonds as part of its debt payment
\nscheme.<\/p>\n
IBRA deputy chairman for Asset Management Credit (AMC)
\nMohammad Sjahrial said that the bonds, maturing in eleven years,
\nwould replace all the Group's debts, worth Rp 29 trillion (US$
\n3.45 billion), in both principal and interest.<\/p>\n
\"As its debt payment to IBRA, it will issue exchangeable
\nbonds, which start to mature in their eighth, ninth, tenth and
\neleventh years,\" Sjahrial said on Tuesday.<\/p>\n
Coupon payment, however, would commence in the first year,
\nwith a yield to maturity of 7 percent for debts in dollars and 14
\npercent for rupiah debt.<\/p>\n
The establishment of Newco was based on a ruling by the
\nFinancial Sector Policy Committee? (FSPC) in October 2000 in a
\nbid to help restructure Texmaco's debts to the government.<\/p>\n
FSPC groups together all economic ministers and oversees
\nIBRA's sale of assets and debts restructuring worth more than Rp
\n1 trillion.<\/p>\n
Newco is divided into two groups based on the group's core
\nbusinesses.<\/p>\n
Newco for Texmaco's textile business is called PT Bima Prima
\nPerdana, with IBRA holding 75 percent of its shares, while the
\nremainder are held by Texmaco. The second is Newco for
\nengineering, called PT Jaya Perkasa Engineering, with all of its
\nshares held by Texmaco.<\/p>\n
Before the crisis, Texmaco was one of the country's largest
\nconglomerates, with the government willing to provide credit
\nfacilities for further expansion.<\/p>\n
However, the devastating crisis that struck in late 1990s left
\nthe company in difficulty over debt repayment.<\/p>\n
Apart from its debt to IBRA, the Texmaco group owes also
\naround $1.65 billion to other creditors.<\/p>\n
Texmaco factories, including a 360,000-ton capacity purified
\nterephtalic acid factory in Karawang, West Java, are located in
\nseveral towns across Java.<\/p>\n
Texmaco's engineering goods, such as textile machinery,
\nmachine tools, automobile components, fabrics and garments have
\nentered markets in South Africa, Southeast Asia, the Middle East,
\nEurope and the United States.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/newco-to-issue-rp-29t-in-bonds-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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