Pakuwon's restructuring talks on track<\/p>\n
JAKARTA (JP): Property developer PT Pakuwon Jati said here on
\nFriday that talks with creditors over the company's debt
\nrestructuring proposals have showed good progress.<\/p>\n
Pakuwon president Esron Siburian said that he was confident
\nthat the company would sign the US$129.8 million and Rp 350
\nbillion debt restructuring deal with all its creditors by the end
\nof this year.<\/p>\n
Esron said that Pakuwon suffered from financial difficulties
\nbecause it had to cover a great foreign exchange loss due to its
\nlarge U.S. dollar debt exposure.<\/p>\n
\"Pakuwon's U.S. dollar obligation was never hedged because the
\ncompany received its revenue in dollars,\" he said.<\/p>\n
However, when the monetary crisis -- which first hit in mid
\n1997 -- deteriorated, the company began to suffer financially
\nbecause its clients paid its dollar-quoted rent fees in rupiah.<\/p>\n
Esron said that in the debt restructuring program Pakuwon
\nwould convert some of its debts into eight-year term bonds.
\nPakuwon was also ready to repay the other loans with the
\ncompany's fixed assets in the form of cleared land for
\ndevelopment, he added.<\/p>\n
\"We would also convert our U.S. dollar denominated debts into
\nrupiah to be conservative,\" he said.<\/p>\n
Pakuwon is one of 85 listed companies on the watch list for
\npossible delisting by the JSX.<\/p>\n
Companies on the watch list, according to the exchange's
\nlisting regulation, are those with unsound equity or doubtful
\nbusiness prospects as declared by their respective public
\naccountants.<\/p>\n
Pakuwon booked a net loss of Rp 744 billion in 1998, as
\ncompared to a net loss of Rp 114 billion the previous year.<\/p>\n
The property developer operates on renting as well as selling
\noffice space, shopping center space and residential housing. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pakuwons-restructuring-talks-on-track-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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