Sat, 26 Apr 2003

Pindo Deli defaults on debt

JAKARTA: PT Pindo Deli Pulp and Paper Mills has reportedly defaulted on its obligation to Bank Permata, which has reported the matter to the Surabaya Stock Exchange.

According to reports, Pindo Deli was supposed to pay some Rp 8.9 billion (about US$1 million) in interest to Bank Pertama on April 15. The bank holds bonds issued by the former.

Pindo Deli claimed that it failed to make the payment because of administration glitches with the Indonesian Bank Restructuring Agency (IBRA). The company needs IBRA's approval to withdraw money for debt payments.

Pindo Deli is a subsidiary of the troubled Asian Pulp and Paper conglomerate, which is in debt restructuring talks with IBRA. -- JP