Gajah Tunggal eyes debt swap deals

Fri, 26 Nov 2004, 00:00 WIB | Source: AP

JAKARTA: PT Gajah Tunggal, Indonesia's biggest tiremaker, wants
its creditors to approve a US$73.3 million and Rp 164.9 billion
($18 million) debt swap plan that will allow the company to set
aside money for expansion.

Gajah Tunggal's holding in unit PT GT Petrochem would be
reduced to 28.36 percent from 50.01 percent under the proposed
debt-for-equity swap, Gajah Tunggal said in a statement to be
presented to investors in Jakarta on Thursday.

Refinancing its debt would allow Gajah Tunggal to focus on its
tire business and expand production of radial tires and
motorcycle tires, the Jakarta-based company said in the
statement.

Gajah Tunggal, 10 percent owned by Europe's largest tiremaker
Michelin & Cie, is benefiting from rising car sales in Indonesia.
-- Bloomberg

View JSON | Print