PT Astra Otoparts to restructure debts<\/p>\n
JAKARTA (JP): Automotive components manufacturer PT Astra
\nOtoparts said on Thursday that it was negotiating a US$65 million
\ndebt rescheduling program with its creditors.<\/p>\n
Finance director Benny Redjo Setyono said the company proposed
\nthe restructuring of its matured debt to another five
\nyears.<\/p>\n
\"Some portion of the debts will be repaid next year,\" he said,
\nadding that the company now held about $27 million in idle cash.<\/p>\n
About $40 million of the $65 million debt was owed by Astra
\nOtoparts while the remaining $25 million was owed by its
\nsubsidiaries, he said.<\/p>\n
\"The debts have not matured yet, but we would like to have the
\nnegotiation early on for a better bargaining position,\" he said,
\nadding that the company had never been delinquent in servicing
\nits debts.<\/p>\n
Benny said that the company's financial condition had been
\nstable throughout the economic crisis -- which first hit in mid
\n1997 -- and that it never defaulted on its payment obligations to
\nany of its creditors.<\/p>\n
He said he now believed the prolonged economic crisis, of
\nwhich the automotive industry was among the hardest hit sectors,
\nwas on the road to recovery, with clear signs such as consistent
\nhigher sales for the company lately.<\/p>\n
The company predicted higher sales this year, but declined to
\ngives any possible figures, as too many uncontrollable factors
\nwere involved in such a prediction, such as the rupiah exchange
\nrate and the domestic political situation.<\/p>\n
Astra Otoparts recorded Rp 769.9 billion in sales in the first
\nhalf of the year, while for the whole year in 1998 and 1997 the
\ncompany booked Rp 1.24 trillion and Rp 828.5 billion
\nrespectively.<\/p>\n
The company's net profit surged to Rp 184.6 billion during the
\nfirst half of the year from a net loss of Rp 557.6 billion in the
\nsame period of the previous year.<\/p>\n
The company exported 48.6 percent of its total output during
\nthe first half of this year.<\/p>\n
\"The export market for the company has been stable. For the
\nwhole year in 1998 we exported 58.3 percent of our total output,\"
\nhe said.<\/p>\n
The company exports to Japan, the United States, Southeast
\nAsian countries, the Middle East and South America.<\/p>\n
Astra Otoparts, listed on the Jakarta Stock Exchange, is a
\nholding company with over 30 subsidiaries manufacturing a wide
\nrange of automotive parts. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-astra-otoparts-to-restructure-debts-1447893297",
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