Several options for CMNP debt restructuring
Several options for CMNP debt restructuring
JAKARTA (JP): Publicly listed toll road operator PT Citra
Marga Nusaphala Persada is considering a number of options to
restructure its US$97.8 million foreign debts, the company's
executive said here on Thursday.
CMNP's newly appointed president Daddy Hariadi said the
options for the restructuring of the debts, which will mature
next year will include buy back, refinancing, right issues, loan
extension and cash settlement.
"If the debt payment is not rescheduled, CMNP will suffer a
shortage of funds of about Rp 366 billion (about US$36.6 million)
when the debts fall due early next year," he told a press
briefing.
He said that the company's foreign debts comprise $60 million
in Eurobonds and $37.8 million in floating rate notes (FRN),
which will both fall due in February, next year.
About $61.3 million of the debts have been hedged with its
own funds, he said, adding that about $41.6 million of the
hedging funds came from its bank deposit and the remaining $19.7
million from the company's other internal sources.
"We hope the company and creditors will be able to reach
agreement on the debt restructuring proposal in November this
year," he said.
Daddy said that CMNP has also proposed that the government
raise its tolls tariff not only to help its debt restructuring
but also to convince foreign investors that investment on
Indonesia's toll road is still promising.
CMNP, through PT Jasa Marga, has recently proposed an increase
of between 50 percent to 112.5 percent from the existing rate, he
said.
The company's tolls tariff, which were last increased in 1996,
is already too low to cope with the operating costs, he said.
Last year, the company booked a net profit of Rp 19.99 billion
($1.9 million), compared with a net loss in 1999 of Rp 298.8
billion in the previous year.
In 2001, the company expected an increase of at least 275
percent in its net profit to Rp 71.9 billion ($7.1 million) due
to the continuing increase of traffic volume, and the estimated
hike of toll tariffs. (05)