JIHD to default on bonds

JAKARTA (JP): Property and hotel firm PT Jakarta International Hotels and Development (JIHD) said on Tuesday it was in default on coupon payments for its Rp 519 billion (US$58 million) 10-year bonds.

"As part of our debt restructuring, we will offer the holders of the bonds the opportunity of swapping their bonds for land in central Jakarta," JIHD director Gunarih was quoted as saying by Dow Jones news agency.

JIHD corporate secretary Theo Sengpeng declined to comment further on the proposal, saying that it had to await a meeting of the company's' bondholders.

He said that a bondholders' meeting to approve the proposal failed to reach a quorum on Tuesday.

"We may have to reschedule the meeting by three weeks," Theo told The Jakarta Post.(bkm)