APP clarifies collateral pledge
APP clarifies collateral pledge
JAKARTA (JP): Asia Pulp & Paper Co. (APP) announced on
Thursday additional information regarding the impact of the
previously announced settlement agreement among the controlling
shareholders of the Sinar Mas Group and the Indonesian Bank
Restructuring Agency on APP and its subsidiaries.
As previously disclosed, IBRA has guaranteed, on behalf of the
Indonesian Government, a total of approximately US$1.3 billion
owed to PT Bank Internasional Indonesia by the Sinar Mas Group of
companies, which includes APP and its subsidiaries.
The company stated that in connection with the settlement
agreement:
- APP's principal subsidiaries in Indonesia, PT Indah Kiat Pulp
& Paper, PT Pabrik Kertas Tjiwi Kimia, PT Pindo Deli Pulp and
Paper Mills, PT Lontar Papyrus Pulp & Paper Industry, PT Purinusa
Ekapersada, and PT Ekamas Fortuna, each granted liens on all of
their fixed assets (land, buildings and machinery), other than
those fixed assets on which liens had been previously granted, to
IBRA to secure the Government Guarantee in respect of the BII
Obligations.
- The aggregate indebtedness secured by these liens is
approximately US$1.3 billion, including approximately US$1.0
billion in respect of amounts owed by APP and its subsidiaries to
BII;
- Purinusa, an Indonesian company approximately 96 percent of
which is directly and indirectly owned by APP, has been granted
options to acquire the following: (i) all of the outstanding
shares of PT Publisita Perdana and PT Pangkalan Usahamaju, two
companies which, together with Purinusa, are the shareholders of
PT Wirakarya Sakti; and (ii) all of the outstanding shares of PT
Perdagangan Perindustrian Dan Pembangunan Sadang Mas, a company
which is the majority shareholder of PT Arara Abadi.
Wirakarya Sakti and Arara Aabadi hold forestry timber
concessions and provided approximately 90 percent and 70 percent,
respectively, of the wood used by Lontar and Indah Kiat in 2000.
The Options are valid for two years and have exercise prices
that are subject to adjustment by reference to the fair market
value of the relevant concession;
- To further secure the BII Obligations, Purinusa has granted
liens to IBRA on all the shares of Indah Kiat, Tjiwi Kimia and
Pindo Deli held by it and on which liens had not previously been
granted. Purinusa has also entered into a pledge agreement with
IBRA with respect to both the Options and any shares acquired
pursuant to the Options to secure the BII Obligations;
- Purinusa has agreed to acquire 51 percent of the shares of Bank
Internasional Ningbo, a Chinese bank previously majority-owned by
BII. Completion of this acquisition is subject to approval by
Chinese regulatory authorities.
In connection with this acquisition, Purinusa incurred
liabilities of approximately US$225 million to BII.