PLN delays unveiling 2000 financial report

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)