Riau Andalan sells assets to pay debts<\/p>\n
JAKARTA (JP): PT Riau Andalan Pulp & Paper (Riaupulp) is
\nselling its nonproductive assets to repay its bonds and other
\nlong-term debts, according to a company senior executive.<\/p>\n
W. Michael Verge, the company's director of finance, said some
\nof the assets had been sold, including a 135-megawatt power
\ngenerator worth US$266 million.<\/p>\n
\"The power plant has been sold to PT Riau Prima Energi,\" he
\nsaid, adding that the company's a $141-million chemical plant
\nwould be sold to PT Inti Indorayon Utama (IIU).<\/p>\n
He said the other assets such as hotels and property were also
\nfor sale.<\/p>\n
Riaupulp, a pulp producer based in Riau province, planned to
\npay the bonds issued by its subsidiary Rapp International Finance
\nat 101 basis points over treasuries.<\/p>\n
The bond holders previously objected to the plan, saying it
\nwould cause them millions of dollars in losses, as the bonds were
\nsold at 105 on the market.<\/p>\n
Verge said it has been agreed in the obligation contract that
\nthe company can pay its bonds at 101 basis points as long as its
\nasset selling exceeded 25 percent.<\/p>\n
\"Everything we did is legal,\" he was quoted by the daily
\nBisnis Indonesia as saying over the weekend.<\/p>\n
Verge said Riaupulp, 98 percent of which is owned by
\npublicly listed Asia Pacific Resources International Holdings,
\nmust also protect its shareholders and not just the bond holders.
\n(02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/riau-andalan-sells-assets-to-pay-debts-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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