Astra offers upfront payment

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.