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)