Humpuss to pay debts to IBRA in cash and assets

Humpuss to pay debts to IBRA in cash and assets

JAKARTA (JP): Eight companies under the Humpuss Group will pay
Rp 235 billion and US$111.6 million in cash and assets to the
Indonesian Bank Restructuring Agency (IBRA) as part of the
group's debt restructuring agreed with the agency last week.

"This is the early-stage implementation of the Humpuss Group
debt restructuring agreement with IBRA," said Abdul Wahab,
president of PT Humpuss, on Monday.

The eight companies are PT Humpuss, PT Humpuss Patragas, PT
Sekar Artha Sentosa, PT Humpuss Pengolahan Minyak, PT Gatari Air
Service, PT Humpuss Terminal Petikemas, PT Humpuss Aromatik and
PT Mabua Intan Express.

The debt restructuring agreement involves cash and asset
settlements, as well as revision of certain other terms and
conditions of the previous agreements, according to Wahab.

Wahab said Humpuss Group was committed to meeting the time
table for the cash and asset settlements between late April and
late June, as stipulated in the restructuring deal.

"We are scheduled to make cash payments to IBRA of Rp 85
billion on April 24 and then Rp 150 billion on May 11," Wahab
told journalists.

"After these two payments we will not have any more rupiah
debts with IBRA," he added.

"Then on June 30 we will pay IBRA again -- a combination of
cash and assets valued at $111.6 million total -- to repay part
of the total US$355.8 million debts we have with IBRA. The
remaining dollar loans, amounting to some $244 million, will be
accommodated by a new debt restructuring agreement," he said.

Assets to be handed over to IBRA are two plots of land and a
building in Jakarta with a total value of Rp 190 billion,
according to Wahab.

The major concession of the restructuring, Wahab said, is
extension of the loan maturity up to 10 years, with a grace
period of one to two years.

The new maturity dates for the eight companies will be 8 years
or 10 years depending on their respective business plans and
projected cash flows.

He also said that the interest rates as stipulated in the debt
restructuring deal used floating market interest rates which were
subject to a periodic review by IBRA.

"We currently use the market interest rate of 10 percent and
18 percent per annum for the dollar and rupiah, respectively," he
said. (udi)