Texmaco units operate at 20% capacity<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
To counter a delisting threat from the Jakarta bourse,
\ntwo publicly listed units of troubled textile and engineering
\nconglomerate Texmaco Group announced on Friday that they were
\nstill operating, albeit at low capacity.<\/p>\n
The Jakarta Stock Exchange (JSX) has threatened to delist the
\ntwo companies following uncertainties over their future
\noperations given the protracted negotiations between their
\nholding company and the government and foreign creditors to
\nrestructure the group's debts.<\/p>\n
In a statement to the Jakarta Stock Exchange (JSX), textile
\ncompanies PT Texmaco Jaya and PT Polysindo Eka Perkasa said they
\nwere still managing to run part of their businesses and maintain
\ntheir labor forces despite a dire need for fresh capital.<\/p>\n
\"Currently, the firm remains in operation, despite the fact
\nthat only 20 percent of the installed capacity in its production
\nfacilities is being utilized due to difficulties in obtaining
\nworking capital. In the case of the fleece business, however, the
\ncompany is still operating at full capacity,\" said Texmaco Jaya.<\/p>\n
The company said it expected it would be able to increase the
\nutilization of its production facilities if Polysindo, as the
\nmain supplier of raw materials to the company, could increase the
\nutilization of its plants.<\/p>\n
Polysindo, meanwhile, said that the utilization of installed
\ncapacity at its purified terepthalic acid, polymer and polyester
\nyarn plants currently stood at between 80 percent and 90 percent.<\/p>\n
The company also said that it could only use 60 percent of the
\ninstalled capacity at its polyester chip and polyester yarn
\nproduction facilities.<\/p>\n
Texmaco Group, the country's largest textile company, at one
\nstage said it needed at least $200 million to revive its
\noperations and pay its overheads.<\/p>\n
The group owes around Rp 29 trillion (US$3.4 billion) to the
\ngovernment, which has been trying to sell these loan assets for
\nthe past few years.<\/p>\n
It also owes $1.2 billion to foreign creditors, in addition to
\n$52 million in tax, electricity and gas arrears.<\/p>\n
With more than 20 subsidiaries, the group, which was founded
\nby an Indonesian businessman of Indian origin, Marimutu
\nSinivasan, plunged into debt following the Asian financial crisis
\nof 1997, prompting the government to bail it out.<\/p>\n
The Texmaco loan assets are among the few remaining unsold
\nassets once vested in the now-defunct Indonesian Bank
\nRestructuring Agency (IBRA), and are currently managed by asset
\nmanagement company PT Perusahaan Pengelola Aset (PPA).<\/p>\n
IBRA failed on a number of occasions to sell its Texmaco loan
\nassets following investor concerns that the assets could be
\nfraught with legal problems.<\/p>\n
Elsewhere in the report to the JSX, both Texmaco Jaya and
\nPolysindo claimed that the debt restructuring efforts would only
\nimpact on the ownership of the companies, not their future
\noperations.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/texmaco-units-operate-at-20-capacity-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}