Creditors approve Intraco debt restructuring program
Creditors approve Intraco debt restructuring program
JAKARTA (JP): PT Intraco Penta won approval from its 14
foreign and local creditors on Monday to restructure its US$44.18
million debt.
Finance director of the publicly listed heavy machinery
company Petrus Halim, said under the debt restructuring
agreement, creditors would be offered either a five-year
rescheduling of the debt, including a two-year grace period, or a
minimum 60 percent debt reduction.
He said under the second option the company would pay the debt
in cash.
"The debt restructuring agreement is meaningful to the
company, because it gives a two-option scheme of debt settlement,
which is good for both parties," he said after signing the
agreement.
The restructuring agreement was signed with BHF-Bank
Aktiengesellschaft and Bank Finconesia as the coordinating agent
and security agent respectively.
Petrus said under the debt restructuring, a tender would be
set up for creditors taking part in the debt reduction program.
He said creditors would win the tender by bidding the largest
debt reduction to Intraco.
Intraco has set aside $5.2 million of company cash reserves to
be used for debt repayment to the winning creditors, he said.
The minimum bidding rate is a 60 percent debt reduction.
Petrus said creditors who were unsuccessful in the tender
would join the second option.
The debt rescheduling will bear an annual U.S. dollar interest
rate of 12 percent on the five-year rescheduled term and be
collateralized by the company's cash reserve, inventory and
receivables.
"If both schemes in the debt restructuring proceed smoothly,
Intraco will save an annual interest expense of at least Rp 12.5
billion (about $1.58 million), and reduce the company's risky
exposure to the U.S. dollar," Petrus said.
The restructuring agreement was a signal of creditors'
confidence in Intraco, he said.
"The 14 banks have performed a thorough one-year analysis on
the company's general performance and prospects. The company at
the end was deemed by those creditors to be feasible for debt
restructuring." (udi)