Astra offers upfront payment

JAKARTA (JP): Publicly-listed PT Astra International's Chief Executive Officer Rini Suwandi announced Monday the company would provide an upfront payment equivalent to three months' interest to creditors.

The offer was contained in a new proposal to the company's credit committee and creditors made in a concerted bid to reach an agreement and push its debt restructuring process to move faster.

Earlier on Friday, Astra said it would buy back US$1.17 billion in unsecured debts to its foreign creditors at 30 percent of the face value and had set aside $45 million for the buyback program.

Rini added in a statement on Monday that the upfront interest payments will be disbursed at certain milestones whereby 25 percent of the total will be paid after the debt buyback program is finished on March 12, another 25 percent when the commercial terms are agreed and the remaining 50 percent at the final closing.

Astra, Rini added, would also accelerate the process of asset sales to support its debt restructuring program.