Astra International offers to return $45 million to creditors

Astra International offers to return $45 million to creditors

JAKARTA (JP): Publicly listed PT Astra International said
Thursday it has offered to spend up to US$45 million to buy back
some of its $1.17 billion in unsecured debts.

"This program is the next major step of Astra International's
debt restructuring program," the company said in a statement.

To fund the debt repurchase program, Astra International will
provide $45 million although Astra has the right to increase or
decrease this amount prior to the purchase price announcement on
Feb. 12, it added.

Astra, Indonesia's largest automobile producer with sizable
stakes in diverse sectors, including agro-industry, invited all
unsecured non-trade related creditors, including bond holders to
submit their indicative non-binding bids between Jan. 28 and Feb.
10.

The statement said total outstanding debt obligations eligible
to be offered for purchase amounted to around $1.17 billion,
based on an exchange rate of Rp 10,700 to the dollar, as quoted
by the central bank (Bank Indonesia) on Sept. 30.

"But under this program, no debt obligations will be purchased
by Astra if the price exceeds 25 percent of the face value of the
debt obligations," the company added.

Outstanding unsecured non-trade related debt services and
indebtedness included in the repurchase program are: $125 million
in convertible bonds due in 2006, $125 million in notes due in
2001, $200 million in guaranteed bonds due 2003, Rp 400 million
in bonds due in 2002.

Any non-trade indebtedness Astra owes to its creditors and
documented under bilateral or syndicated banking facilities,
inter-company loan agreements or promissory notes can also take
part in the program, Astra said.

The Astra Group has a total $2 billion in foreign-debt
obligations and local-currency debt of about Rp 2 trillion. (vin)