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)