Astra to meet creditors Nov 26

Astra to meet creditors Nov 26

JAKARTA: PT Astra International said Thursday it will meet with creditors Nov. 26 in Singapore to seek their approval for a proposed debt-restructuring, which pushes back a deadline to repay all its debt to 2009 from 2006.

"We hope that the meeting will be attended by at least two thirds of our total creditors," Astra's President Budi Setiadharma told Dow Jones Newswires.

He said he expects the creditors and Astra will sign a debt deal one week after the meeting.

Late last month, Astra got approval from the steering committee - which represents around 40 percent of all creditors - for a rescheduling plan, which pushes back a deadline to repay all its debt to 2009 from 2006.

Sources said under the deal the company will have to repay US$93 million and Rp 111 billion each year until 2009. For this year only, the company will repay $75 million and Rp 100 billion.

Creditors also have urged Astra to delay a plan to hold a rights issue until next year.

The company, which is 32 percent owned by Singapore's Cycle & Carriage Ltd., has debt totaling $726 million and Rp 881 billion, with annual payments due until 2006.

Creditors include Isuzu Motors Asia Ltd., Marubeni Corp., Itochu Corp., and the Japan Bank for International Cooperation.--Dow Jones