APP to form debt committee

APP to form debt committee

JAKARTA (AFX-ASIA): Asia Pulp & Paper Co said its creditors have agreed to the establishment of informal committees as part of the process of drafting of a debt restructuring plan.

"Informal committees representing our bank, export credit agency and trading company creditors have been formed. An informal committee representing holders of a substantial portion of our bond indebtedness has also been formed," APP chief financial officer Hendrik Tee said.

The company issued the statement after a creditors' meeting in Singapore attended by representatives of bondholders, Indonesian and international banks, trading companies, export credit agencies and the Indonesian Bank Restructuring Agency.

The company also said Chinese state bank creditors of the company's Chinese operating subsidiaries formed a separate committee to negotiate with the company and that the company plans to meet with that group in the coming weeks.