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.