APP units restructure debts

Thu, 22 Mar 2001, 00:00 WIB | Source: REUTERS

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.

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