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)