APP to meet creditors today

JAKARTA: Pulp and paper giant Asia Pulp & Paper (APP) will meet its creditors in Jakarta today to review a plan for the restructuring of the company's more than US$13 billion debts.

Spokesman of APP's parent company the Sinar Mas Group, Yan Partawijaya said on Thursday APP would unveil a draft of a debt restructuring scheme before its creditors' steering committee.

He was unable to say where and when exactly the meeting would take place, except that it would be in Jakarta.

Friday's meeting may kick start what could be long and tough negotiations with local and international creditors.

Last May, APP defaulted on more than $13 billion in debts, making it one of Asia's largest corporate defaults in history.

The company was unable to repay billions of U.S. dollars in bonds it issued to finance expansion plans amid sagging pulp and paper prices in the world market. -- JP