Dharmala creditors to meet

Dharmala creditors to meet

TOKYO (Reuters): Investors who bought samurai bonds issued by Indonesia's Dharmala Intiutama International BV plan to meet on Sept. 1 to decide whether to declare the bond in default, Sanwa Bank said yesterday.

Dharmala Intiutama International BV failed to meet its debt obligations last month, said a spokesman for Sanwa Bank, the bond's trustee.

The company is a wholly owned unit of the Dharmala Group's holding company, PT Dharmala Intiutama.

If a majority of the creditors oppose the meeting, it may be canceled, he said.

The creditors then would wait until the bond matures, hoping the company's financial situation improves.

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