SMG told to repay debts to IBRA<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Troubled Sinar Mas Group (SMG) must repay US$240 million of
\nits total $1.2 billion debt to the Indonesian Bank Restructuring
\nAgency (IBRA) by the end of this month.<\/p>\n
IBRA Chairman Syafruddin Temenggung was quoted by Antara as
\nsaying on Tuesday that failure to make the repayment would force
\nthe agency to seize the group's collateral assets, a move that
\nwould certainly anger Sinar Mas' foreign creditors and
\nbondholders.<\/p>\n
He added that the policy was in line with the decision made by
\nthe Financial Sector Policy Committee (FSPC) on May 8.<\/p>\n
Sinar Mas had earlier asked the government for a rescheduling
\nfacility.<\/p>\n
The government decided last year to guarantee Sinar Mas' debts
\nin the ailing Bank Internasional Indonesia (BII) to spare the
\nbank from deeper trouble due to a possible default by the group,
\nwhich also owes billions of dollars to international creditors
\nand bondholders.<\/p>\n
In return, Sinar Mas agreed to surrender assets equal to 145
\npercent of its debts to BII as collateral until the group repay
\nthe debts.<\/p>\n
Previous reports stated that the group had pledged various
\nfixed and equity assets. Among the assets pledged were factories
\nand equipment under PT Indah Kiat Pulp & Paper, PT Tjiwi Kimia,
\nPT Pindo Deli Pulp & Paper Mills, PT Lontar Papyrus Pulp & Paper
\nIndustry, PT Purinusa Eka Persada.<\/p>\n
It has also been reported that Sinar Mas offered shares in
\npublicly listed Indah Kiat, Tjiwi Kimia, PT Duta Pertiwi PT Smart
\nCorporation, in non-listed PT Indomilk, Pindo Deli Pulp, PT Bumi
\nSerpong Damai, PT Henkel Indonesia.<\/p>\n
Around 90 percent of Sinar Mas' debts to BII belong to the
\ngroup's Singapore-based Asia Pulp & Paper Co., which has
\ndefaulted on more than $12 billion of foreign debts.<\/p>\n
Sinar Mas, the country's second largest conglomerate after the
\nSalim Group prior to the 1997 financial crisis, borrowed
\nmassively from BII at the time to help finance its aggressive
\nexpansion program.<\/p>\n
BII was founded by Sinar Mas, but the bank is now under
\ngovernment control.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/smg-told-to-repay-debts-to-ibra-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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