Creditors agree to reschedule debts

Creditors agree to reschedule debts

JAKARTA (JP): PT Intraco Penta said on Friday that most of its
14 foreign and local creditors had agreed to reschedule their
debts to the publicly listed heavy equipment supplier.

Intraco's finance director, Petrus Halim, said the debt
restructuring agreement with the local and foreign banks would be
signed here on Monday.

"In principle, the banks are willing to restructure company
debt for up to five years, with two a year grace period, while
several creditors are considering giving us reductions of up to
60 percent," he said following the company's shareholder meeting.

According to the financial report completed in December 1998,
the company had short-term and long-term liabilities of Rp 229.35
billion and Rp 197.59 billion, respectively. They included Rp
167.08 billion and Rp 188.58 billion in short-term and long-term
bank loans.

Petrus said shareholders agreed in the meeting to use the
company's assets as collateral to secure the loans.

He said the company, which booked a net loss of Rp 15.44
billion in 1998 as compared to net profit of Rp 2.23 billion in
1997, would not pay dividend to shareholders.

Intraco's business covers the sale and rental of heavy
equipment and spare parts for companies dealing in oil and gas,
pulp and paper, forestry, agribusiness and mining industries, as
well as repair and maintenance services.

The company's total sales fell by 6.5 percent to Rp 196
billion in 1998, from Rp 210 billion in 1997, but the sharp
increase in interest payments and foreign exchange losses put the
company deeper into the red.

Petrus attributed the fall in sales to the drop in the demand
on heavy equipment from customers whose business had mostly been
effected by the country's economic crisis.

The company sold only 44 units of heavy equipment last year,
compared to around 500 units yearly before the economic crisis,
he said.

"However, with the debt restructuring program and upbeat
prediction in the recovery of forestry and mining sectors, we
hope to record more profit this year," Petrus said.

He said that according to industry estimates, the mining
sector, which contributed about 70 percent of Intraco's business
in 1998, will experience more the two-fold growth in 1999.

He said Intraco sold 30 units of heavy equipment worth around
US$6 million in the first quarter to March this year.

The company expected to book a total sales revenue of Rp 212
billion with pre-tax profits of Rp 21.9 billion for 1999, he
added.

Intraco is controlled by PT Shalumindo Investama with 36.58 a
percent stake, PT Spallindo Adilong 29.46 percent, Alamsyah 6.47
percent, PT Malinda Graha 3.79 percent and the public 23.70
percent. (cst)