Medco restructures debts

JAKARTA (JP): Medco Group has restructured US$623 million in debts, or 86 percent of the total, the company said in a statement on Friday.

"The remaining $100 million of debt, of which $40 million is with IBRA (Indonesian Bank Restructuring Agency) and $60 million with other financial institutions, is currently under negotiation for the group's next debt restructuring program," it said.

It said Medco Group's total debt stood at $613 million and Rp 881 billion, or together about $723 million as of the end of 1997. It did not provide the latest data on the group's total debts.

All the personal wealth of the group's owner, businessman- politician Arifin Panigoro, has been pledged to creditors to cover the restructured debts, the company said.

Arifin is the majority shareholder in the group.

The group operates diversified businesses, including petroleum services, food and agriculture, construction, manufacturing and financial services. (udi)