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.