Bakrieland's creditors agree to restructure foreign debt

Bakrieland's creditors agree to restructure foreign debt

JAKARTA (JP): Publicly listed property firm PT Bakrieland
Development, a property arm of the Bakrie Group, has successfully
restructured part of its US$15.7 million foreign debt, its
president said yesterday.

Bambang Irawan Hendradi said South Korean Dong Nam Diamond
Finance Company had recently agreed to roll over its $1.4 million
loan to his company, due this year, to five years and six years.

He also said Bakrieland was negotiating for the rescheduling
of the remaining $14.3 million debt with other foreign creditors.

"We hope that we can reschedule the payment of the debts to
2003 from 2001 as scheduled originally," he said.

Bambang said debt restructuring talks with foreign creditors
were expected to bear positive fruit as most creditors understood
the condition of the country's crisis, which has hit most
companies.

He said that since bilateral talks with overseas creditors
would bring a positive outcome for the company, it was not
necessary for Bakrieland to join the newly established Indonesian
Debt Restructuring Agency (INDRA).

INDRA, which will begin operations Aug. 3, will help
Indonesian cash-strapped companies settle repayment of their
offshore debts.

Bambang said the property firm had Rp 9 billion debt in
domestic Bank Panin.

"We have also made negotiations with the bank as part of the
restructuring plan."

Bambang said that as part of the efforts to survive the
country's worst-ever crisis, the company would also sell several
of its subsidiaries, especially those which recorded losses in
the previous year.

"Selling unprofitable units is part of our efficiency
program," he said.

Bambang said the restructuring plan was expected to boost the
performance of the company, which suffered a net loss of Rp 33.18
billion last year, largely due to large foreign exchange losses.

The company booked operating profits of Rp 7.74 billion last
year, up 177 percent from Rp 2.79 billion in the previous year,
he said.

He declined to project the company's earning and sales this
year.

Total assets swelled to Rp 1.11 trillion in 1997 from Rp
267.73 billion in 1996.

Bakrieland acquired assets of its affiliates, PT Krakatau
Lampung Tourist Development Center, PT Bali Nirwana Resort and PT
Graha Andrasentra Propertindo in September last year.

"The company spent around Rp 469 billion to acquire the
companies' assets," he said, adding that funds to buy the assets
of the three companies were derived from proceeds of the
company's limited public offering last year. (aly)