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.