Anwar Sierad restructuring debt

Anwar Sierad restructuring debt

JAKARTA (JP): Publicly listed poultry company PT Anwar Sierad
announced on Thursday that it expected to complete the
restructuring of its US$160 million debt within the next three
months.

The company's finance director Awi Tantra said the company was
currently working to obtain a "letters of support" from its five
biggest creditors.

"The letters of support from the big creditors would then be
distributed to all the remaining creditors in the hope of
receiving at least two-thirds of the creditors' approval during a
vote on our final debt restructuring proposal," he said.

The company's five biggest creditors representing 50 percent
of its total debts are the Indonesian Bank Restructuring Agency
(IBRA), PT Rabobank Duta Indonesia and Rabobank Asia of Singapore
branch, the Deutsche Bank, AG of Germany and Hongkong Shanghai
Banking Corporation.

Awi said the debt restructuring proposal would be a
combination of a debt-to-equity swap and debt rescheduling.

"We expect about 70 percent of the debts would be converted to
the company's equity and the remaining would be rescheduled."

One of its creditors earlier filed a bankrupty petition
against Anwar Sierad at the Jakarta Commercial Court. The case
was postponed after the poultry company's major creditors
approved a tentative debt restructuring proposal.

Anwar Sierad was given 270 days by the court to complete final
debt restructuring with its creditors.

The court will declare the company bankrupt if it fails to
reach a final debt restructuring agreement within the allocated
timeframe.

Awi said he was optimistic Anwar Sierad would reach a final
debt restructuring agreement with the creditors.

"The company has been operating normally throughout the
crisis. And currently we are achieving a better performance
because the country's economic and political conditions are
stabilizing," he said.

Anwar Sierad -- 50.01 percent owned by PT Sietek Nusantara
Finance and the rest by the public -- is involved in chicken
hatching, producing chicken feed and trading in poultry farming
equipment.

Awi said the price of day-old chickens (DOC) was recovering
from as low as below Rp 1,000 per DOC last year to the current
DOC figure of Rp 2,300. (udi)