Dharmala BV misses loan payment

Dharmala BV misses loan payment

TOKYO (Reuters): Indonesia's Dharmala Intiutama International BV has missed an interest payment on a 15 billion yen samurai bond and could be declared in default, a spokesman at the bond's trustee Sanwa Bank said yesterday.

Dharmala Intiutama International, a wholly owned unit of Dharmala group holding company PT Dharmala Intiutama, was likely to be declared in default at a creditors' meeting if it failed to pay the interest by July 17, the spokesman said.

The semi-annual interest payment was due on Thursday.

The possible creditors' meeting would be called by Sanwa Bank after a public announcement by the bank that the company had failed to meet its obligations.

Dharmala's five-year, 15 billion yen bond matures on July 9, 2002. The bond, lead-managed by now-defunct Yamaichi Securities Co, is guaranteed by PT Dharmala Intiutama.

Indonesia's Dharmala Initiutama confirmed in Jakarta yesterday that it had missed an interest payment on a 15 billion yen samurai bond which had come due on Thursday.

It said in a statement that financial and legal advisers had been appointed to assist in restructuring the debt of the entire Dharmala group.

The spokesman said Dharmala was likely to be declared in default if it failed to pay the interest by July 17.

Dharmala said its debt restructuring program was well under way and that HSBC Investment Bank Plc and law firm Norton Rose had been appointed as advisers.

"Dharmala Group will inform creditors of their findings as soon as possible with a view to a restructuring program in the context of the group's prospects and projections," it said.