Tri Polyta seeks full approval for its debt restructuring<\/p>\n
JAKARTA (JP): Publicly listed PT Tri Polyta Indonesia said on
\nWednesday that 70 percent of its bondholders agreed to its debt
\nrestructuring proposal but it still needed to achieve a unanimous
\napproval to make the debt restructuring take effect.<\/p>\n
Tri Polyta president Iman Sucipto Umar said the company had to
\nget 100 percent approval of the bondholders as stipulated in the
\ndebt agreement between the company and the bondholders.<\/p>\n
\"The restructuring proposal involves a debt rescheduling,
\nthus, according to our agreement, it must be approved by all the
\nbondholders,\" he said adding that the company expected to
\ncomplete the debt restructuring agreement by September.<\/p>\n
The Tri Polyta debt restructuring proposal covers a
\nrescheduling of the maturity of its US$185 million bonds from
\n2003 at present to 2005.<\/p>\n
It also covers a temporary revision of the bond coupon rates
\nfrom the ongoing 11 and 3-8th percent per annum to between 8
\npercent and 10 percent during the first two years following the
\nsigning of the restructuring agreement, according to Iman
\nSucipto.<\/p>\n
In addition, the proposal also offers the bondholders a
\nproportional 15 percent stake in the company if the company fails
\nto fully repay the bond principal by the new maturity year 2005.<\/p>\n
Tri Polyta, which is listed on the Jakarta Stock Exchange and
\nwas recently delisted from the New York Stock Exchange, issued
\nthe U.S. dollar-denominated bonds worth $185 million in the U.S.
\nin 1996. The bonds will mature in 2003.<\/p>\n
In servicing the bonds, Tri Polyta failed to pay coupon
\npayments to its bondholders on June 1, 2000, Dec. 1, 1999 and
\nJune 1, 1999.<\/p>\n
Tri Polyta booked a net loss of Rp 128 billion in the first
\nquarter this year.<\/p>\n
In 1999, Tri Polyta booked a net income of Rp 22.3 billion, as
\ncompared to a net loss of Rp 589.7 billion the previous year.<\/p>\n
The company produced 73,300 metric tons of polypropylene
\nduring the first quarter and it expected the total output would
\nreach 250,000 metric tons this year. The amount of polypropylene
\nproduced and sold has always been around the same levels,
\naccording to Iman Sucipto.<\/p>\n
Tri Polyta currently has a negative equity amounting to about
\n80 percent of its total assets.<\/p>\n
It's total assets stood at Rp 2.03 trillion as per Dec. 31,
\n1999, compared to Rp 2.06 trillion the previous year.<\/p>\n
Tri Polyta, with its production base in Cilegon, West Java,
\nhas a total capacity of 360,000 metric tons of polypropylene per
\nyear.<\/p>\n
Polypropylene is plastic resin used as raw material for
\nvarious packaging applications. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tri-polyta-seeks-full-approval-for-its-debt-restructuring-1447893297",
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