Sinar Mas seeks waivers

Sinar Mas seeks waivers

SINGAPORE (Reuter): Indonesian white-knight Sinar Mas Group is seeking 12-month payment waivers from all creditors of troubled Amcol Holdings from the time it lists the replacement company, sources close to the deal said yesterday.

In exchange, Sinar Mas would give all Amcol's existing creditors, including bondholders, a corporate guarantee to inject assets worth US$2 billion into the replacement company, called Newco or Golden Amcol, the sources said.

They said the move was to prevent bankers from demanding immediate payment. The 12-month grace period was also to enable Newco to finalize long-term credit arrangements, they added.

Newco is seeking a listing on the Stock Exchange of Singapore (SES), but the exact date has not been revealed.

Amcol, a property and trading company, has been under judicial management since July, when a Price Waterhouse audit report said the company had liabilities of S$1.16 billion (US$0.81 billion).

Price Waterhouse said Amcol, whose shares were immediately suspended, had total assets of S$1.55 billion but needed an immediate injection of Singapore $100 million to stay afloat.

After beating off a bevy of Hong Kong tycoons, Indonesian conglomerate Sinar Mas was given the chance to rescue Amcol.

A proposal for the debt payment waiver would be discussed with bondholders on March 10, the sources said.

They said for the proposal to be accepted, a consensus would have to be obtained that represented 75 percent of Amcol's total S$800 million debt.

Of the debt, S$285 million is to bondholders. The sources said if no consensus were reached, the court would have the discretion to sanction the proposal.