JIHD to default on bonds

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)