IBRA, Sipatex sign debt deal

IBRA, Sipatex sign debt deal

JAKARTA (JP): PT Sipatex Putri Lestari has obtained approval
from the Indonesian Bank Restructuring Agency (IBRA) to
restructure its Rp 155.46 billion and US$24.37 million debts.

IBRA said on Friday that under the approved restructuring
scheme, Sipatex would convert all of its rupiah-denominated debts
to U.S. dollars at a conversion rate of Rp 8,580 per U.S. dollar,
leaving Sipatex with debts worth $42.49 million.

IBRA said that as part of the restructuring deal, shareholders
of Sipatex agreed to inject fresh capital of Rp 25 billion into
the company last year.

The funds were immediately used to pay off part of its rupiah
denominated debts.

In addition, Sipatex shareholders also committed to injecting
an additional Rp 2.5 billion in cash within two months of the
signing of the Memorandum of Understanding with IBRA on May 31.

But IBRA did not explain in its statement how the company
would repay its $42.49 million outstanding debts. (cst)