Tjahya Motor secures debt deal

JAKARTA (JP): PT Tjahja Motor Corporation, the sole distributor of BMW cars in Indonesia, has received approval from its creditors to reschedule its US$55 million debt, the company said here on Thursday.

Under the debt agreement, which was signed with the creditors in Singapore last week, the company's debt repayment period will be extended to five years, including a grace period of 18 months.

Tjahja Motor, a subsidiary of the widely diversified Astra Internasional, said that the creditors had also agreed to extend the repayment period for another one year if the company could not repay the debt within the five year period.

The interest rate of the debt has been fixed at 1.8 percentage points over the Singapore Interbank Offered Rates (Sibor).

Tjahya Motor is the last company under Astra Internasional to complete its debt restructuring program.(hen)