Sunson reschedules $36.7m loan

JAKARTA (JP): Publicly listed PT Sunson Textile Manufacturer Tbk secured on Monday a three-year extension period for the maturity of a US$36.7 million syndicated loan.

The loan, signed in 1995 and carrying an interest rate of 3 percent over the Singapore Interbank Offered Rate (SIBOR), was due to mature this year.

It was first extended in 1998 at the peak of the economic crisis.

"We have injected the loans into our working capital," Sunson president Purnawan Suriadi following the signing of the loan rescheduling agreement.

The picture shows Sunson's chief commissioner Sundjono Suriadi (left, photo above) exchanges a document on the loan agreement with the vice president of The Chase Manhattan Manochere Alamgir.

Chase Manhattan Bank acted as the head of the informal steering committee to renegotiate the syndicated loan.

The other institutions involved were American Express Bank, Rabobank Duta Indonesia, Standard Chartered Bank, The Sanwa Bank, PT Bank Societe Generale Indonesia, Sumitomo Bank, NV De Indonesische Overzeese Bank, PT Bank Dai-Ichi Kangyo Indonesia, PT United Overseas Bank Bali and the Indonesian Bank Restructuring Agency representing Bank Bira after it was taken over by the agency.

The loan constituted 80 percent of Sunson's remaining debt of about $47 million, Purnawan said.

Alamgir said he was satisfied with Sunson's financial performance in generating profit and surviving the economic crisis.

"The company has managed to direct sales from the domestic market to foreign markets," Alamgir said of the committee's decision to extend the loan.

American Express Bank senior director Espen Lund said the terms of the loan were unchanged because the basic risks related to the crisis were basically over.

"Sunson is a very well managed company and we have much hope in its future," Lund said. (03/udi)