Astra fails to hold creditors' meeting

Astra fails to hold creditors' meeting

Dow Jones, Singapore

PT Astra International Tuesday failed to hold a planned creditors' meeting to vote on a US$800 million debt restructuring plan for holders of its rupiah-denominated bonds.

The meeting failed to go ahead in Singapore due to insufficient attendance by the creditors of the Indonesian automotive company, Astra Finance Director John Slack said.

The plan requires approval of at least two-thirds of Astra's creditors.

"We didn't get sufficient lenders to achieve a quorum for the meeting today, so it was simply adjourned," said Slack.

Slack added he hopes to hold another meeting "as soon as possible" and is optimistic that it will take place in December.

Last week, Astra unveiled the $800 million debt restructuring plan, which includes raising cash through a rights issue and refinancing almost half of total borrowings.

Under the plan, Astra will refinance around $400 million to $450 million of the debt through new loans.

Astra plans to repay $75 million this year, lower than total loans due around $150 million. The company's cash flow is insufficient to meet its huge debt, most of which it took out in foreign currency before the 1997-98 Asian crisis.

The company, which is 32 percent owned by Singapore's Cycle & Carriage Ltd., also hopes to raise $100 million to $150 million next month through a rights issue to help repay debt. Cycle & Carriage has said it will subscribe to its full share of the issue, which would boost its stake to about 40 percent.

Astra's creditor steering committee is dominated by Japanese banks.