Creditors, debtors meet Wednesday

Creditors, debtors meet Wednesday

NEW YORK (Dow Jones): Indonesia and its creditor banks will meet here next Wednesday to establish a framework for restructuring the country's crushing corporate foreign debt, banking sources close to the negotiations said Wednesday.

A tri-headed steering committee, composed of Deutsche Bank, Bank of Tokyo-Mitsubishi and Chase Manhattan, has been appointed to lead the negotiations on the creditor side.

Although the composition of the Indonesian delegation is still unclear, Finance Minister Fuad Bawazier will attend Wednesday's meeting, banking sources said.

Mark Walker of lawfirm Cleary, Gottlieb, Steen & Hamilton will also attend the negotiations.

Sources familiar with the negotiations said Indonesia will present its plan, based on a framework designed by the Mexican government in 1983 and know as Ficorca, to help companies service an estimated US$74 billion in foreign debt - a burden that has ballooned in recent months as the Indonesian currency has nose- dived.