APP to meet export credit agencies

APP to meet export credit agencies

JAKARTA: Asia Pulp & Paper Co. will meet key creditors tomorrow to discuss their proposal for protection from a second debt default, the head of the Indonesian Bank Restructuring Agency (IBRA) said.

The meeting was delayed on Wednesday as the export credit agencies owed the bulk of the outstanding debt of more than US$13 billion hammered out details of their proposal, IBRA chief Syafruddin Temenggung told reporters on the sidelines of an investor forum.

The creditors include Japan's Nippon Export & Investment Insurance and export credit agencies from the U.S. and Germany.

Asia Pulp has been negotiating a debt recast with lenders after a default 27 months ago, the success of which is key to restoring investor confidence in Indonesia. IBRA, which is owed $1 billion, is mediating in the debt talks between the company and overseas lenders. -- Bloomberg