Pelindo II to discuss debt restructuring

Pelindo II to discuss debt restructuring

JAKARTA: Port operator PT Pelabuhan Indonesia II, or Pelindo II, will meet with creditors again next week to discuss a proposal to extend the maturity of its dollar-denominated debt, the company said Thursday.

"We will meet again on Dec. 18 to resume the negotiation," Tony Hajar, the state-owned company's senior treasury manager, told Dow Jones Newswires.

In April this year, Pelindo II, which operates 12 seaports in eight provinces, including the areas surrounding Jakarta, failed to redeem US$113 million worth of medium-term notes that were issued in 1997, shortly before the onset of the Asian crisis.

Like many Indonesian companies, Pelindo II was unable to repay the debt upon maturity due to the sharp depreciation of the rupiah. The dollar is currently trading around Rp 8,900, well above the Rp 2,300 level when the Pelindo II notes were first issued. -- Dow Jones