Asiana converts most debts to equity

Asiana converts most debts to equity

JAKARTA (JP) Publicly listed toys manufacturer PT Asiana Multi
Kreasi obtained approval from shareholders here on Monday to
restructure the majority of its US$31.3 million debts through a
debt-to-equity swap.

Asiana's president, M. Ramdani Basri, said that about 70
percent of the total debts would be converted into the company's
new shares.

Creditors, under the debt-to-equity swap, would own at least
60 percent of the company's shares but would cause a major
dilution in the ownership of the current shareholders, he said
following the company's shareholders meeting.

According to him, the founders' stake will be reduced to 25
percent from 62.3 percent while the ownership of the investing
public will decline to 15 percent from 37.7 percent at present.

Asiana's total debt was $31.3 million as of March. Its
creditors include Schroders & Co, PT BNP Lippo Indonesia, PT
Keppel Tat Lee Buana, ABN Amro Bank, Kim Eng Securities, PT Bank
Inter Pacific and Bank Indover.

Ramdani said that about 60 percent of the company's shares
which would be given to creditors as part of the debt-to-equity
swap would be controlled directly by Kim Eng Securities because
the securities company had taken over the majority of the debts
from other creditors.

Ramdani said that the debt-to-equity swap would reduce the
company's total debts to $5.9 million but will raise its equity
from minus Rp 108 billion as of March to Rp 67 billion.

Asiana, which operates two toy factories in Bekasi, West Java,
suffered a 46 percent drop in sales in 1999 to Rp 20.7 billion
(US$2.49 million) from Rp 38.6 billion in 1998.

Ramdani attributed the drop in sales to the sharp fall in
orders from foreign customers.

Ramdani said that the company reported a net loss of Rp 49.5
billion in 1999, a slightly lower loss than the net loss of Rp
91.5 billion in 1998.

Asiana manufactures and distributes children's toys, games and
animated cartoon films characters under licenses of Walt Disney
Company, United Feature Syndicate and Turner Home Entertainment.

The company exported 40 percent of its products to United
States, Asian and European countries, under the trademarks
Mickey&Co, Garfield, Pokemon, The Lion King, and Scooby Doo.(07)