Sritex to tackle problems after debt restructuring
Sritex to tackle problems after debt restructuring
JAKARTA (JP): Debt-ridden textile company PT Sritex is
expected to overcome its non-performing debt problems within a
year of debt restructuring.
The president of state-owned Bank Dagang Negara (BDN), Subagyo
Karsono, told journalists the company has shown good progress
since the restructuring of its debts.
He was speaking after attending a swearing in ceremony for 19
officials at the Ministry of Finance.
"Operationally, this company has been profitable and I don't
think it necessary for us to take it over," Subagyo said.
He has placed a number of the bank's executives in the
company, including Hasan Basri Sidin, a former lending manager,
who acts as finance manager at the company.
Subagyo said he also has put an account officer and a textile
expert in the company, which operates a plant in Sukoharjo,
Central Java.
He emphasized that Sritex's non-performing debts reach no more
than Rp 500 billion. "So, what is reported by the local press
that the company's non-performing debts amounted to Rp 1 trillion
is just wrong," he said.
The matter of Sritex's debt surfaced to public view last week
when legislator Sri Bintang Pamungkas brought it up during a
hearing with the Governor of Bank Indonesia J. Soedradjad
Djiwandono. On that occasion, Hendrobudiyanto of the central bank
confirmed that Sritex is one of companies having debt problems.
Subagyo noted that the debt restructuring was to prevent the
company from bankruptcy and to save the jobs of 12,000 people.
"The company, with annual sales of almost Rp 25 billion
(US$11.5 million), still has prospects," he said.
Cause
Commenting on the possible cause of the debt problems, Subagyo
said that the company expanded at a time when the business
climate was not very favorable.
Subagyo rejected the possibility the company misrepresented
the value of the projects. "There were no mark-ups and no special
letters of reference from strong people."
Mark-ups and the use of letters of reference have become
heated issues since the exposure of the $460 billion bank scandal
involving the Golden Key Group. The group's owner, Eddy Tansil,
reportedly used letters of reference from high ranking officials,
including Sudomo, former coordinating minister for security and
political affairs, and J.B. Sumarlin, former minister of finance.
Subagyo also denied rumors that Minister of Information
Harmoko is one of the company's shareholders.
"According to our legal data, he is not even mentioned," he
said, adding that the company's main shareholders are Muhammad
Lukminto and his family.
When asked about what BDN will get in return from the debt
restructuring, Subagyo noted that he has asked for "good will"
from the company.
He said as soon as its operations recover, the company is
expected to sell part of its shares to the public and to give an
ownership stake to the bank. (rid)