Satelindo restructures $583 million debt
JAKARTA (JP): PT Satelit Palapa Indonesia (Satelindo) signed agreements on Tuesday to restructure US$583 million in debts to more than 45 foreign and local creditors, including the Indonesian Bank Restructuring Agency (IBRA).
The telecommunications company managed to bring its total debt down from $750 million after paying off some debts from the proceeds of an insurance claim from its Palapa C1 satellite.
The value of debts covered under the agreements, including the 1999 interest rate, is $192 million in term loans owed to IBRA and French and German export credit agencies, $67 million in letters of credit to Paribas/BBD and IBRA, $109 million in vendor financing to Alcatel and Siemens, and $215 million in commercial papers.
Satelindo president Abdul Kadir Assegaf signed the agreements, the result of 18 months of negotiations, with representatives of the creditors in a ceremony at the company's headquarters. IBRA was represented by the deputy for assets management credit Irwan Siregar.
"The completion of the debt restructuring is an important milestone for Satelindo," Assegaf said.
"Completion allows Satelindo to redirect its focus on managing its business and maintaining its position as the leading integrated telecom company in Indonesia," he said.
Besides operating the Palapa C2 telecommunications satellite, Satelindo also runs the second largest GSM cellular network in Indonesia with some 800,000 subscribers.
The debt restructuring will be conducted through an initial payment of the 1998 interest, capitalizing the 1999 interest, converting matured notes to new notes, a rescheduling of debts which will mature in 2006 with secured creditors being paid earlier than unsecured creditors, and new standby credit facilities worth $50 million provided by Alcatel and Deutsche Telekom.
The debt to IBRA of $70.83 million consists of $65.88 million principal debts and $4.95 million in deferred interests from 1999. The principal debts comprise $60.88 million in letters of credit transferred from Bank Exim Indonesia, and $5 million in commercial paper transferred from Bank Dagang Negara (BDN).
Satelindo is owned by PT Bimagraha Telekomindo (45 percent), Deutsche Telekom Asia (25 percent), PT Telekomunikasi Indonesia (22.5 percent) and PT Indonesian Satellite Corporation (7.5 percent). (10)