Indonesian Recovery to buy corporate debt

Indonesian Recovery to buy corporate debt

HONG KONG (AFP): Hong Kong-based Asia Debt Management and
Indonesia's PT Bhakti Investama Tbk said on Monday they had
formed a joint venture to buy corporate debt and other tradable
assets in the Southeast Asian nation.

The joint venture, called Indonesian Recovery Co., will seek
to "maximize the opportunities for investing in the corporate
restructuring process in Indonesia," a statement from the two
partners said.

The statement said the two partners believed Indonesia
presented "significant opportunities for profitable investment in
debt and other tradable assets."

"Funds may be targeted at specific workout situations or
diversified across a wide spectrum of companies and sectors," it
said

Asia Debt Management is a debt investment manager that offers
investors the opportunity to participate in distressed and high-
yielding Asian debt.

Bhakti Investama is one of three listed investment banking
firms in Indonesia offering services in merger and acquisition
activity, financial/debt restructuring and investment services.

The two companies said they would work closely with government
and official agencies that are mandated to assist the Indonesian
corporate restructuring process.

They said they will target both domestic and international
sources of capital.

"For international funds, the parties will establish a
multiclass investment company which will facilitate the cost-
effective creation of new fund structures," it said.

Many debt-laden Indonesian companies were thrown into distress
when the economy crashed in 1997 after being battered by the
regional currency crisis. Debt restructuring has made slow
progress.