Tue, 10 Oct 2000

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)