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)