Bahana proposes to repay 10% of debts

Bahana proposes to repay 10% of debts

JAKARTA (JP): Financially troubled state-owned securities
company PT Bahana Pembinaan Usaha Indonesia will propose paying
off up to 10 percent of its US$300 million in debt during a
meeting with its 27 creditors in Singapore on Monday.

The company said here over the weekend that the 10 percent
figure was the most "realistic option".

"Such an option is the most realistic offer that can be made
in the restructuring of the company's debts," company spokesman
Yasser Arafat said.

The 10 percent debt repayment will be one of two options to be
forwarded to the creditors, who will discuss the company's debt
restructuring proposal during the Singapore meeting. The other
option will be to liquidate the company.

Yasser said that if the liquidation measure was taken, the
proceeds from the sale of the company's assets would be
proportionately divided among all of the creditors, including the
Indonesian Bank Restructuring Agency (IBRA).

According to the company, its total assets are valued at about
Rp 1.1 trillion (about $100 million), as compared to its debts of
$300 million.

But Yasser said it would be difficult to sell all of the
assets.

Citing assessments by IBRA and financial auditor Arthur
Andersen, Yasser said the company's assets were mostly poor in
quality.

The company said it would appoint an independent auditor to
revaluate the assets so creditors would have more reliable
information.

The revaluation will be finished by June this year, it
added.(03)