UIC restructures US$138.8m debt

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)