KKM, creditors sign deal

JAKARTA (JP): PT Kia Keramik Mas (KKM) and its creditors Deutsche Bank AG (DB) and International Finance Corporation (IFC) signed on Wednesday a standstill agreement as part of its debt restructuring program.

IFC, a member of the World Bank Group, and DB, together the principal lenders to the company, agreed not to commence any legal proceedings during the period.

They will continue to negotiate in good faith on a fair and equitable restructuring of the company's debt and equity.

KKM commenced operations in 1985 and leads the glazed-roof tile sector, producing high quality products with particular focus on residential and commercial market segments.

It is a member of the KIA Group, a major player in Indonesia's ceramic industry.

During the economic crisis, the company has remained operational and continues to sell its products although on a reduced scale. (29)