Astra hopes to reach debt agreement later this month
Astra hopes to reach debt agreement later this month
JAKARTA (JP): PT Astra International said on Monday evening
that it hoped to clinch a deal with its creditors by end of April
to restructure its US$1 billion debt.
Astra president Rini M.S. Soewandi told journalists here that
the creditors committee could accept the company's final proposal
on debt restructuring.
"The creditors committee has been comfortable with our final
proposal. So, they can accept it. They realize that Astra needs
more time to repay all of its debt," Rini said.
Rini and five other Astra executives met creditors in
Singapore earlier on Monday to present final details of the
proposed debt restructuring.
Astra's creditors committee includes the Industrial Bank of
Japan, Sanwa Bank, Dai-Chi Kangyo Bank, Fuji Bank, Bank Paribas,
ABN-Amro and Bank Negara Indonesia. They account for some 20
percent of Astra's outstanding debt.
Rini said she was very hopeful that bank-creditors and holders
of bonds issued by Astra would approve the company's full plan.
She said Astra debt restructuring executives would travel to
Singapore, Hong Kong and Tokyo later this week to gather supports
from creditors over the company's debt restructuring plan.
Bank creditors, which account for 65 percent of Astra's
current debt, must have present their vote on the company's final
proposal by April 28. And bondholders must vote by April 29. Late
voters from bondholders would be tolerated until May 13.
"So, we will have a full result of the voting by May 15," Rini
said.
Originally, Astra aimed to gain creditor approval by April 21.
Rini said the dates were moved back the end of April to make it
possible to complete legal and other documentation for the plan.
Under the restructuring plan, Astra's debts are divided into
three tranches that will be fully repaid in three years, 6.5
years and 7.5 years respectively.
The first tranche, which has three-year maturity, consists of
$200 million and Rp 189.9 billion (US$21.6 million) loans or
bonds, with two year grace period of principal payment. Interest
payment resumes after the deal is signed.
The dollar loans carry three-month Singapore Inter-Bank
Offered Rates (SIBOR) plus 1 to 2 percent margin, while the rate
for the rupiah debt uses three-month published local reference
rate (of two state and two private banks) plus a margin, with a
maximum rate of 35 percent per annum.
The second tranche, with 6.5 maturity, comprises of $705.4
million and Rp 701.7 billion loans or bonds, with three-year
grace period on principal payment.
The dollar denominated debt under the second tranche has
three-month SIBOR rate plus a margin, ranging from 1 to 5
percent. The rupiah debt has three-month local reference rate
plus a margin.
The third tranche, with 7.5-year maturity, consists of $100
million and Rp 99.4 billion loans or bonds, with warrants. The
dollar debt carry annual interest rate of 6.5 percent, paid at
the maturity date, and the rupiah debt has annual rate of 15
percent, also paid at maturity date.
Astra plans to issue warrants that will convert into shares
amounting to 10 percent of the company's issued share capital.
"We will tender the third tranche first before proceeding with
the first and second. So, all creditors must bid for the third
tranche when they vote for our debt restructuring proposal," Rini
said.
If bids exceeded the allocated amount, Rini said, Astra would
make proportional allocations. But when bids were below target,
Astra would spread the remaining to other creditors fairly.
Rini maintained that the debt-restructuring plan would not
require creditors to write off their debt, and she assured that
creditors would receive their funds back in 7.5 years. (rid)
JAKARTA (JP): PT Astra International said on Monday evening
that it hoped to clinch a deal with its creditors by end of April
to restructure its US$1 billion debt.
Astra president Rini M.S. Soewandi told journalists here that
the creditors committee could accept the company's final proposal
on debt restructuring.
"The creditors committee has been comfortable with our final
proposal. So, they can accept it. They realize that Astra needs
more time to repay all of its debt," Rini said.
Rini and five other Astra executives met creditors in
Singapore earlier on Monday to present final details of the
proposed debt restructuring.
Astra's creditors committee includes the Industrial Bank of
Japan, Sanwa Bank, Dai-Chi Kangyo Bank, Fuji Bank, Bank Paribas,
ABN-Amro and Bank Negara Indonesia. They account for some 20
percent of Astra's outstanding debt.
Rini said she was very hopeful that bank-creditors and holders
of bonds issued by Astra would approve the company's full plan.
She said Astra debt restructuring executives would travel to
Singapore, Hong Kong and Tokyo later this week to gather supports
from creditors over the company's debt restructuring plan.
Bank creditors, which account for 65 percent of Astra's
current debt, must have present their vote on the company's final
proposal by April 28. And bondholders must vote by April 29. Late
voters from bondholders would be tolerated until May 13.
"So, we will have a full result of the voting by May 15," Rini
said.
Originally, Astra aimed to gain creditor approval by April 21.
Rini said the dates were moved back the end of April to make it
possible to complete legal and other documentation for the plan.
Under the restructuring plan, Astra's debts are divided into
three tranches that will be fully repaid in three years, 6.5
years and 7.5 years respectively.
The first tranche, which has three-year maturity, consists of
$200 million and Rp 189.9 billion (US$21.6 million) loans or
bonds, with two year grace period of principal payment. Interest
payment resumes after the deal is signed.
The dollar loans carry three-month Singapore Inter-Bank
Offered Rates (SIBOR) plus 1 to 2 percent margin, while the rate
for the rupiah debt uses three-month published local reference
rate (of two state and two private banks) plus a margin, with a
maximum rate of 35 percent per annum.
The second tranche, with 6.5 maturity, comprises of $705.4
million and Rp 701.7 billion loans or bonds, with three-year
grace period on principal payment.
The dollar denominated debt under the second tranche has
three-month SIBOR rate plus a margin, ranging from 1 to 5
percent. The rupiah debt has three-month local reference rate
plus a margin.
The third tranche, with 7.5-year maturity, consists of $100
million and Rp 99.4 billion loans or bonds, with warrants. The
dollar debt carry annual interest rate of 6.5 percent, paid at
the maturity date, and the rupiah debt has annual rate of 15
percent, also paid at maturity date.
Astra plans to issue warrants that will convert into shares
amounting to 10 percent of the company's issued share capital.
"We will tender the third tranche first before proceeding with
the first and second. So, all creditors must bid for the third
tranche when they vote for our debt restructuring proposal," Rini
said.
If bids exceeded the allocated amount, Rini said, Astra would
make proportional allocations. But when bids were below target,
Astra would spread the remaining to other creditors fairly.
Rini maintained that the debt-restructuring plan would not
require creditors to write off their debt, and she assured that
creditors would receive their funds back in 7.5 years. (rid)