Polysindo restructures debt

Polysindo restructures debt

TOKYO (Dow Jones): Japan's Aoyama Trading Co. said Wednesday that Indonesia's PT Polysindo Eka Perkasa failed to make a Jan. 25 interest payment on debt.

Aoyama Trading said in a statement it now fears the Indonesian company will either default on redemption of the debt or will delay redemption.

But a Polysindo executive said in Jakarta his company had sent notice to its creditors of its plan to restructure debts amounting to $1.4 billion.

The Japanese company said that in July it approved a payment rescheduling on US$15.5 million promissory notes that are due to mature in July 2003. Aoyama Trading holds the notes as collateral on bonds that mature July 1999.

Polysindo was scheduled to make interest payments on Jan. 25 and July 23 of this year, but it missed the Jan. 25 payment, Aoyama said.