Steady Safe not to be liquidated

Steady Safe not to be liquidated

JAKARTA (JP): Debt-ridden transportation company PT Steady
safe will not be liquidated despite its huge overseas debts to
bankrupt Hong Kong-based investment bank Peregrine Investment
Holding, a senior company executive said here yesterday.

Company vice president Shadik Wahono said Peregrine's
liquidator, Price Waterhouse, would instead conduct a due
diligence to asses Steady Safe's asset value and explore ways to
repay its mounting debt, which currently stands at US$280
million.

He said the due diligence was expected to be completed in
September.

"Price Waterhouse will not ask for Steady Safe's liquidation
because we have an agreement with the liquidator," Shadik said
after a shareholders meeting.

The company, controlled by Jopie Widjaja, would continue to
operate through the crisis, Shadik said.

"What's important for us is that the company's still running
and is not going to be liquidated," he said.

He said that if the company was sold off or liquidated at this
time, it would not be able to raise any significant fresh funds.

Peregrine filed for bankruptcy in January after Steady Safe
said it was unable to repay its US$280 million debt due to the
rupiah's sharp fall against the U.S. dollar.

The rupiah has declined in value by 80 percent since July last
year. It was hovering at about 15,000 to the U.S. dollar
yesterday compared to its precrisis level of 2,450.

Shadik said, however, that Price Waterhouse was currently
waiting for the completion of Steady Safe's restructuring program
so it can repay its foreign debts.

Shadik also said the company's annual shareholders' meeting
approved the appointment of Solihin G.P as the new chief
commissioner to replace M. Jusuf Hamka. (aly)