PLN delays unveiling 2000 financial report

JAKARTA (JP): Financially troubled state electricity company PT PLN has delayed the announcement of its audited financial report due to substantial changes in the company's financial structure, a senior official said.

Muriad Syamsudin, PLN's corporate secretary said in a statement here on Monday that PLN initially planned to announce the audited results on April 30, the deadline imposed by the Capital Market Supervisory Agency on public listed companies or bond issuers.

But the recent decision made by the government to swap the company's debts worth Rp 29.9 trillion into its equity participation had forced PLN -- one of major bond issuers in the local bond market -- to change its financial capital structure, he added.

"Although PLN's financial audit report as of Dec.31, 2000 had been completed, it could not be announced because of the changes," Muriad said without mentioning any new time frame for announcing the revised financial report.

Last month, Coordinating Minister for the Economy Rizal Ramli announced the government's approval to convert the Rp 29.9 trillion debts (US$2.5 billion at the current rate) into equity in PLN. The conversion of the debt into government equity, appealed for by PLN for more than a year, will prevent the electricity company from going bankrupt.

The company's debt-to-equity proposal was initially turned downed by Rizal in the fear that approving PLN's bid would set a bad precedent for other state companies seeking similar treatment.

According to Muriad, the substantial changes were also related to the government's approval to reschedule its debts. But, he did not provide information about the amount of debts being rescheduled.

"At present, the company is awaiting the government decree on the debt to equity swap before revising its 2000 financial report. (03)