Gajah Tunggal eyes debt swap deals

Fri, 26 Nov 2004 | 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

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