Texmaco may fail to get $60m loan from Bank Mandiri<\/p>\n
JAKARTA (JP): The applications made by four Texmaco Group
\ncompanies for some US$60 million in new loan facilities from
\nstate-owned Bank Mandiri may not be approved due to the \"senior
\nlender\" status demanded by the bank as a precondition.<\/p>\n
Chairman of the Indonesian Bank Restructuring Agency (IBRA)
\nEdwin Gerungan said on Wednesday that other creditors of the
\nTexmaco companies might oppose the Bank Mandiri demand.<\/p>\n
\"Many other lenders (creditors) will object (to the senior
\nlender status demand),\" Edwin told reporters prior to a meeting
\nwith legislators.<\/p>\n
Separately, Bank Mandiri president E.C.W. Neloe said on
\nWednesday that without the senior lender status, the bank would
\nnot lend its money to the Texmaco companies.<\/p>\n
\"Unless we obtain senior lender status, we'll not lend our
\nmoney. It's as simple as that,\" Neloe said.<\/p>\n
In a working session with the House of Representatives'
\nCommission IX on the state budget and finance on Tuesday, Neloe
\nconfirmed that four Texmaco companies had sought loans from Bank
\nMandiri last year amounting to some $60 million to finance the
\nprocurement of materials and components for buses and trucks
\nordered by the government for military and civilian uses.<\/p>\n
Texmaco is an integrated textile and engineering conglomerate.
\nThe four companies seeking the loans were PT Wahana Perkasa Auto
\nJaya, PT Perkasa Heavyndo Engineering, PT Texmaco Perkasa
\nEngineering and PT Perkasa Indobaja.<\/p>\n
Neloe also told legislators that Texmaco must first
\nrestructure its debt to IBRA before the bank would agree to
\nextend any such new loans to the group.<\/p>\n
Texmaco owes around Rp 19 trillion to IBRA. The massive debt
\nwere initially owed to local banks but was transferred to IBRA
\nafter it turned sour.<\/p>\n
However, it is not clear whether IBRA is also a creditor of
\nthe four companies.<\/p>\n
Last year, Coordinating Minister for the Economy Rizal Ramli
\napproved the restructuring of the Texmaco debt, but the deal
\nattracted strong criticism from various quarters, including the
\nInternational Monetary Fund and the World Bank.<\/p>\n
Texmaco has yet to sign the final restructuring deal with
\nIBRA.<\/p>\n
But Edwin said that some of the Texmaco debt had not yet been
\nrestructured.<\/p>\n
Texmaco was hit by controversy in November, 1999 after a
\nminister alleged that the group had used its political
\nconnections to force the state-owned Bank Negara Indonesia (BNI)
\nto provide it with massive loans.<\/p>\n
Elsewhere, Neloe said that the four Texmaco companies had been
\nexporting their products to General Electric, Siemens, Hitachi,
\nKoebe, Phillips Petroleum and many other customers.<\/p>\n
Neloe, however, said that there was still idle capacity which
\ncould be utilized to increase production and provide more
\nemployment if the companies obtained working capital loans. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/texmaco-may-fail-to-get-60m-loan-from-bank-mandiri-1447893297",
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