APP units restructure debts

APP units restructure debts

JAKARTA/HONG KONG (Reuters): Two Indonesian units of embattled Asia Pulp & Paper (APP) are restructuring $3.8 billion in debt in an apparent attempt to accelerate what could be the biggest emerging market corporate debt restructuring.

PT Indah Kiat Pulp & Paper and PT Tjiwi Kimia lodged notices with the Jakarta bourse on Wednesday, informing officials of the restructuring.

No details or timeframe of the restructuring were given, which follows an announcement from the New York-listed APP this month that it had stopped paying interest and principal on most its massive debts of more than $11 billion.

"The total debts of Indah Kiat being restructured amount to approximately $2.8 billion," Indah Kiat said in its notice, obtained by Reuters. A similar Tjiwi notice was also obtained.

Indah Kiat has announced in local newspapers it would hold a meeting with holders of its rupiah bonds in Jakarta on Thursday.