APP's unit pays interest

APP's unit pays interest

SINGAPORE (AFX-ASIA): Asia Pulp and Paper Co Ltd (APP) said
that unit PT Pabrik Kertas Tjiwi Kimia Tbk has paid the US$13.25
million interest on its bonds due on Feb. 1. The payment was made
within the applicable grace period, it added.

APP chief financial officer Hendrik Tee said the company
managed to make the payment despite a difficult business
environment marked by falling paper prices which has caused
liquidity constraints.

APP has appointed Credit Suisse First Boston to help the
company map out a plan on how it can best deal with its debts.

"APP plans to accelerate its non-core asset divestment
program and has retained JP Morgan to advise it with respect to
certain of these divestments, " Tee said.

Tee said the company has signed a preliminary deal involving
the sale of its paper facility in India, subject to a due
diligence audit to be conducted by the potential buyer of the
asset.