Humpus signs debt restructuring deal
JAKARTA (JP): The Humpuss Group signed on Tuesday a memorandum of understanding (MoU) with the Indonesian Bank Restructuring Agency (IBRA) on the restructuring of about US$330 million in debts.
The head of the agency, Glenn Yusuf said the restructured debts comprised $307 million, Rp 167 billion and M$12 million owed by eight Humpuss Group companies.
The eight debtor companies are PT Humpuss (the holding company), PT Humpuss Patragas, PT Humpuss Aromatik, PT Humpuss Terminal Petikemas, PT Gatari Air Service, PT Sekar Artha Sentosa, PT Mabuan Intan Express and PT Humpuss Pengolahan Minyak.
Glenn said in a statement that the Humpuss Group president, Hutomo Mandala Putra, who is also the youngest son of former president Soeharto, had agreed to settle his group's debts through cash and asset settlement and other modes of restructuring.
"Basically, the value of the companies' assets is still higher than their debts," Glenn said, adding that they had agreed to settle part of their debts through an equity swap.
The agency said $203 million in debts owed by PT Humpuss Aromatic, PT Humpuss Terminal and PT Mabua Intan Express would be restructured.
The rupiah debts of PT Humpuss Patragas, PT Humpuss Terminal, PT Gatari Air Service, PT Sekar Artha Sentosa and PT Humpuss Pengolahan Minyak would be settled through cash payments amounting to Rp 66 billion and asset settlements amounting to Rp 100 billion.
The agency said the American and Malaysian dollar debts would be resolved through cash and asset settlements and a corporate guarantee by PT Humpuss, PT Humpuss Patragas, PT Gatari Air Service, PT Sekar Artha Sentosa and PT Humpuss Pengolahan Minyak.
The remainder of the Humpuss debts would be resolved through a debt to equity swap, Yusuf said.
"Technical details of the debt settlement will be worked out by both parties because the mode of restructuring will vary from one debtor company to another."
Glenn acknowledged that negotiations for the restructuring deal had been sluggish, but said the complex problems faced by the Humpuss companies necessitated protracted negotiations. (06)