IBRA to reshuffle PT Chandra Asri
IBRA to reshuffle PT Chandra Asri
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
will reshuffle the key management of the country's largest
petrochemical operation, PT Chandra Asri, in a bid to help
accelerate the company's debt restructuring process, according to
IBRA deputy chairman Eko S. Budianto.
"IBRA will place two of its people at Chandra Asri to oversee
the agency's interests," Eko told reporters on Monday.
"But we will not replace the company's president director," he
added, referring to newly appointed Chandra Asri president E.C.
Neloe.
Eko said that a foreigner with extensive experience in the oil
and petrochemical industry would take over the finance director
position, while the audit director would be given to an
Indonesian.
"We already have the candidates but we can't disclose their
identities right now," he said.
Chandra Asri was placed under the control of IBRA in April
after it failed to settle debts of about Rp 2.65 trillion owed to
state-run Bank Bumi Daya, Bank Dagang Negara and nationalized
Bank Danamon.
IBRA took over the debts because it has been in a non-
performing category.
Chandra Asri is now one of IBRA's 20-largest bad debtors.
Chandra Asri is a joint venture between Japanese investors led
by the Marubeni Corp. with a 24 percent stake and local investors
which include the Bimantara Group and the Barito Group.
Eko said that IBRA had yet to reach a debt restructuring
agreement with Marubeni over Chandra Asri's debt.
He said that one possibility was through a debt to equity
swap.
"We have yet to agree on the numbers," he said.
BP Amoco Plc. of the U.K. has said that it would acquire
IBRA's stake in Chandra Asri once a debt restructuring program
had been reached.
Chandra Asri produces ethylene, polyethylene and propylene,
the raw materials for plastics.
The project has been plagued by controversy since it was built
in 1992 including allegations of marking up the value of the
project and suffering from a lack of efficiency.
Meanwhile, group head of the loan workout division at IBRA
Irwan Siregar said that there had been positive progress over
debt restructuring talks with 20 of its largest bad debtors.
Irwan pointed out textile firm Apac Group which owes some Rp
1.4 trillion, PT Bakrie Nirwana Resort which owes US$132 million,
PT Bukit Welirang Indah (Rp 1 trillion) of the Sekar Group, PT
Cisadane Raya Chemicals (Rp 1.1 trillion), PT Kertas Basuki
Rahmat ($250 million) and PT Pasifik Satelit Nusantara (Rp $42
million plus Rp 480 billion).
But Irwan admitted that the agency experienced difficulties
with the other debtors including PT Banten Jaya Persada, which
owed Rp 1.4 trillion in bad debts.
The Kompas daily said that Banten Jaya, which belongs to the
Kalla Group, is a conglomerate owned by Minister of Trade and
Industry Jusuf Kalla.(rei)