Tjiwi Kimia to delay payment to 2006

Tjiwi Kimia to delay payment to 2006

JAKARTA: Indonesia's paper maker PT Pabrik Kertas Tjiwi Kimia said it has won approval from its bondholders to delay the repayment of interest on its Rp200 billion bond issue until 2006.

Tjiwi Kimia, a unit of Singapore-based Asia Pulp & Paper Co. (PAP), held a bondholders' meeting Tuesday after defaulting on the interest payment due Nov. 8, 2001.

"The bondholders, however, have asked the company to provide a 25 percent sinking fund from its operational cash flow within two-and-a-half years," spokesperson Yan Partawijaya told reporters.

He said the money from the sinking fund will be put in an escrow account.

Partawijaya said the delay is effective from the date the company defaulted on the payment, which is Nov. 8. --Dow Jones