Hanson writes off debts

Hanson writes off debts

JAKARTA (JP): The extraordinary shareholders' meeting of
publicly listed garment producer PT Hanson Industri Utama
resolved on Monday to write off the debts of its subsidiaries and
affiliated firms.

Hanson president Benny Tjokrosaputro said the company would
remove debts worth Rp 3 billion (US$340,000) owed by three of its
subsidiaries and by two affiliated firms from its balance sheet.

The three subsidiaries are PT Mayor Textile, PT Mega Power
Pratama and PT Mayor Florex Indah, while the affiliated firms are
PT Yusung Mayor Textile and PT Mayor Florex.

Benny said that the decision was made because the five firms
had already ceased to operate.

The shareholders' meeting also approved Hanson's proposed
rights issue to raise some Rp 700 billion.

The capital raised will be used solely for the purpose of
paying the company's debt to the Indonesian Bank Restructuring
Agency (IBRA) and to state-owned Bank Mandiri.(bkm)