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)