IBRA restructures batik firm's debt

IBRA restructures batik firm's debt

JAKARTA: The Indonesian Bank Restructuring Agency (IBRA) said Thursday it has completed the restructuring of the debt worth US$23.2 million owed by batik textile manufacturer PT Dan Liris Industrial & Trading Company.

Under the debt restructuring arrangement, a $5 million tranche of the debt will be converted into an eight-year term loan carrying an interest rate on an increasing scale between the Singapore Interbank Offered Rate (SIBOR) plus 2.5 percent and 5.5 percent per annum, the agency said.

Another $6.4 million tranche of debt will be turned into an eight-year convertible bond paying interest at 0.5 percent per annum, with a yield increasing over time to between 7.5 percent and 11.5 percent.

A final tranche worth $5.8 million will be restructured into a two-year convertible bond with a 10.5 percent annual coupon payment.

Finally, overdue interest worth $6 million will be converted into a three-year loan.

Dan Liris produces batik products under the brand label Batik Keris. -- JP