Tirtamas to settle debt

Tirtamas to settle debt

JAKARTA (JP): The widely-diversified Tirtamas Group has agreed
to provide a Rp 1.6 trillion guarantee as a requirement for the
recapitalization of its affiliate Bank Papan Sejahtera.

PT Harawi Sekawan, Bank Papan's new majority shareholder, said
in a statement that the guarantee also covered all of Tirtamas'
obligations to the bank.

Harawi, a business unit of the country's largest Muslim group
Nahdlatul Ulama, said it had signed an agreement with Bank Papan
and PT Tunasmas Paduarta of the Tirtamas Group on the bank's
recapitalization program.

The bank would then hold an extraordinary shareholders meeting
on Thursday to get minority shareholders' approval of the
recapitalization plan.

Bank Papan is still under the supervision of the Indonesian
Bank Restructuring Agency after it used government liquidity
support amounting to more than 200 percent of its capital. (gis)