Texmaco probed over sale of German asset<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nis currently investigating textile conglomerate Texmaco group
\nover an alleged sale of the group's asset in Germany, according
\nto agency deputy chairman Irwan Siregar.<\/p>\n
Irwan said on Thursday if Texmaco had intentionally hidden the
\nsale transaction, which was made prior to the signing of a debt
\nrestructuring agreement with IBRA, then the indebted group had
\nviolated the spirit of the deal.<\/p>\n
\"If it is true... that contravenes the spirit of the (debt
\nrestructuring) Memorandum of Understanding (MoU). IBRA will take
\naction,\" he told reporters.<\/p>\n
Irwan declined to say if the case would prompt the agency to
\nannul the MoU, saying he had yet to be fully informed about the
\ntransaction.<\/p>\n
\"We're waiting for confirmation from an independent party,\" he
\nsaid.<\/p>\n
\"Texmaco has certain responsibilities that must be fulfilled
\nunder the terms of the MoU,\" he added, without elaborating.<\/p>\n
Texmaco is IBRA's largest debtor, owing around US$2.7 billion.<\/p>\n
Irwan was responding to a report in Wednesday's edition of the
\nAsian Wall Street Journal that claimed Texmaco sold its 60
\npercent stake in Trevira GmbH, an affiliate of Germany's Hoechst
\nAG, to the company's management for an undisclosed amount.<\/p>\n
Trevira, Europe's largest polyester fiber maker, is controlled
\nby European Fiber Industries BV, a unit of Texmaco's Multikarsa
\nInvestama.<\/p>\n
The sale transaction apparently occurred three weeks before
\nTexmaco reached a debt restructuring agreement with IBRA, a unit
\nof the finance ministry, earlier this month.<\/p>\n
Under the controversial debt restructuring agreement, Texmaco
\nmust surrender assets to a new holding company which would be
\ncontrolled by IBRA. The holding company would then issue
\nconvertible bonds to the agency. Texmaco could regain ownership
\nof the surrendered assets if it repaid the government in 11
\nyears.<\/p>\n
Many had dubbed the deal as a government bailout of the
\ntextile conglomerate.<\/p>\n
The International Monetary Fund and the World Bank had also
\nexpressed concern over the Texmaco restructuring deal.<\/p>\n
Texmaco initially owed local banks. But after the debts became
\nnonperforming they were transferred to IBRA which has a mandate
\nto restructure and recover the huge nonperforming loans of the
\ndomestic banking sector.<\/p>\n
Texmaco is owned by businessman Marimutu Sinivasan.<\/p>\n
President Abdurrahman Wahid stirred another controversy last
\nweek when he said in Seoul, South Korea that he had asked the
\nAttorney General's Office to delay the legal processes against
\nthree conglomerates including Sinivasan because their companies
\ncould boost the country's exports and help the country out of the
\ncurrent economic crisis.<\/p>\n
The other two conglomerates are Prajogo Pangestu of the Barito
\ngroup and Syamsul Nursalim of the Gadjah Tunggal group.<\/p>\n
The three conglomerates owed huge debts to IBRA.<\/p>\n
Some experts have said the move by Abdurrahman was basically
\naimed at protecting the conglomerates, which could become
\npotential financiers for the 2004 general elections.<\/p>\n
Economists have also questioned the quality of the Texmaco
\nassets that would be transferred to IBRA via the new holding
\ncompany.<\/p>\n
The sale of Texmaco's German asset prior to the debt
\nrestructuring agreement could provide another prove of IBRA's
\nweakness in tracing overseas assets of indebted conglomerates.<\/p>\n
The agency had also been lambasted with regards to the Master
\nof Settlement and Acquisition Agreement (MSAA) made with five
\nformer bank owners to settle debts to the government. Under the
\ndeal, the conglomerates agreed to transfer their assets to IBRA
\nbut it turned out that the value of the assets were not
\nsufficient to cover their obligations.<\/p>\n
According to the MSAA, the conglomerates were not obliged to
\ncover the difference. However the new economic team is stepping
\nup pressure to force the former bank owners to surrender more of
\ntheir assets. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/texmaco-probed-over-sale-of-german-asset-1447893297",
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