UIC restructures US$138.8m debt

JAKARTA (JP): Publicly listed chemical producer PT Unggul Indah Corp. (UIC) announced on Sunday it had successfully restructured US$138.8 million in debt.

The company said in a statement a debt restructuring agreement was reached with its 23 bank creditors after a series of negotiations which began in 1998.

"We really appreciate the confidence and trust shown by the lenders to our management and our company's performance," UIC president Hartono Gunawan said.

"Despite the slightly higher interest rate, the agreement reached will afford UIC significant flexibility to respond to market developments," Gunawan said without revealing the terms of the agreement.

The restructuring plan was approved by the company's shareholders in May, he said.

The $138.8 million debt comprises $107.2 million in syndicated loans and $31.6 million in bilateral loans, the statement said.

UIC is the sole Indonesian producer of AB-Alkylbenzene, which is used in detergents. It is also Southeast Asia's largest producer of the product. (jsk)