DGS pays bond interest

DGS pays bond interest

JAKARTA (Bloomberg): Holders of bonds issued by PT Daya Guna
Samudera, Indonesia's biggest fishing company, received an on-
time interest payment they hadn't expected.

After being told by Daya Guna's parent, Djajanti Group, that
they wouldn't receive full interest payments on $225 million of
bonds issued in 1997, investors found they had received all of
the interest owed them on Dec. 1.

"We were surprised last night when we checked our account...
we'd been fully paid," said Soufat Hartawan, assistant investment
manager at Manulife Financial Corp., which holds about $1 million
of the company's bonds.

"On Tuesday, Daya Guna said in a statement to the Surabaya
Stock Exchange that, because of cash flow problems, it must pay
the interest in two tranches: one was to be paid Friday for as
much as $5 million and the remaining due will be paid on Jan. 5,
2001."

Try Yantono, Daya Guna's director, said he wasn't sure why
the full payment was made. "We instructed the trustee to pay in
two tranches," he said.