Telkom, units in talks to settle debt<\/p>\n
Tantri Yuliandini, The Jakarta Post, Jakarta<\/p>\n
State-owned telecommunications company PT Telkom said it was
\ncurrently negotiating with some of its subsidiaries on the
\nfinalization of their debts to Telkom which has Rp 118.69 billion
\n(about US$11.3 million) in potential losses according to an audit
\nby RSM International.<\/p>\n
Telkom's director of finance Mursyid Amal said on Monday that
\nTelkom was prepared for its 35 percent shares in regional
\ncellular company PT Komselindo, its largest debtor, to be
\ndiluted.<\/p>\n
\"If there's a new investor wanting to come in, then please do
\nso, because Telkom will not inject more money,\" he said on the
\nsidelines of a media conference here.<\/p>\n
Komselindo is currently trying to attract new investment both
\nin a bid to repay debt and finance an expansion program from
\nanalog advanced mobile phone system (AMPS) to the more advanced
\ncode division multiple access (CDMA).<\/p>\n
Mursyid said that Komselindo owes between 10 percent and 15
\npercent of the total debts owing to Telkom.<\/p>\n
Another of its debtors, regional cellular company PT Metrosel,
\nhas agreed to a debt to equity swap with Telkom, Mursyid said.
\nTelkom owns a 20.17 percent share in Metrosel.<\/p>\n
Mursyid did not specify the amount of debt or what percentage
\nTelkom would gain from the swap.<\/p>\n
Telkom will also relinquish its 25 percent share in PT
\nMobisel, another regional cellular operator, he said.<\/p>\n
The company is also negotiating with vsat operator PT Cipta
\nSari Mandiri (CSM) and several television stations, Mursyid said,
\nadding that CSM had indicated that it would repay its debts in
\ninstallments.<\/p>",
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