GKBI is likely to remain care taker of Kanindotex
GKBI is likely to remain care taker of Kanindotex
JAKARTA (JP): The Federation of Indonesian Batik Cooperatives
(GKBI) is likely to remain the caretaker of the debt-ridden
Kanindotex despite a possible change in the textile company's
ownership.
"Bank Bumi Daya (BBD) and Bank Pembangunan Indonesia (Bapindo)
are expected to maintain the federation under Kanindotex's
management," a senior executive from the Ministry of Finance
said.
Director General for Financial Institutions Bambang Subianto
said that the federation would also be given an option to buy a
portion of Kandindotex's shares despite the entry of any new
owner.
Speaking at a hearing with the Budgetary Commission of the
House of Representatives, Soebianto confirmed that a business
consortium was recently established to take over Kanindotex.
The consortium, led by Bambang Trihatmodjo, the chairman of
the Bimantara Group, is negotiating with BBD and Bapindo, both
lenders to the textile company, about the takeover plan, Bambang
Said.
"A takeover deal is still in the process of negotiation. So we
don't know how much money will be involved in the transaction,"
Soebianto said about the possible involvement of the new
consortium in the Kanindotex's operation.
The government appointed GKBI last September to take over the
management of Kanindotex, reported to have incurred bad debts of
around Rp 500 billion (US$232 million) in BPD and Bapindo.
The federation's chairman, Noorbasha, was subsequently
installed as the president of the new management, replacing Robby
Tjahjadi, the former president and the majority shareholder in
the textile company.
However, in his letter to the two banks late last month, Robby
Tjahjadi said that he had approved the establishment of the
consortium to take over the company's assets and to solve its
loan problem.
Opposition
Noorbasha categorically opposed the deal. He claimed that the
entry of a new shareholder would not only weaken the federation's
position in further restructuring the operation and financial
activities of Kanindotex but would weaken its chance of acquiring
the company.
The new management has been able to double the company's yarn
production to 800 bales per day and raise its fabric output by
around 25 percent to 250,000 meters per day.
The increase in the yarn and fabric production significantly
raised the company's net sales to Rp 115 billion per month, he
said, adding that the improvement in the production performance
resulted in a profit of Rp 24.5 billion in the last four months,
Noorbasha said.
He said earlier that the company's outstanding debts (loan
principal and interest) in BBD and Bapindo had grown to over Rp
936 billion, excluding the Rp 70 billion in fresh debts raised by
the new management to save the company from total failure during
the early stages of its rescue program.(hen)