Pama restructures debts

JAKARTA (JP): Publicly listed PT United Tractors heavy machinery company announced on Wednesday that its mining subsidiary, PT Pamapersada Nusantara (Pama) has restructured its foreign debts of US$38.7 million to nine foreign creditors.

Under the restructuring deal, which was signed in Singapore last week, Pama will continue to pay interest quarterly, make an initial principal payment of $6.8 million and pay the remaining principal in installments every six months.

"Under this agreement, we will repay all our debts by Dec. 15, 2003," Pama president Sudiarso Prasetio was quoted as saying in the United Tractors press statement.

Pama director Cleos Harryanto said the debt restructuring deal would enable the company to focus its attention on further expanding its coal production in South Kalimantan.

Pama produced 11 million metric tons of coal in the first semester, up from 9.6 million tons in the same period last year.

United Tractors also announced that its subsidiary PT Pandu Dayatama Patria, which assembles engines for Komatsu construction machinery, BMW and Peugeot sedans and Nissan Diesel trucks, has also restructured its US$2 million debt to Sanwa Bank Ltd.