UT's unit restructures debt

JAKARTA (JP): PT United Tractors Pandu Engineering (UTE), a unit of publicly-listed heavy equipment distributor PT United Tractors, said it had closed a deal with its creditors to restructure a debt of US$14.5 million.

United Tractors said in a statement that the debt- restructuring deal was signed on May 16 in Singapore.

The creditors are Salomon Brothers Holding Company Inc.; the Singapore's branch of the Dai-ichi Kangyo Bank Limited; the Daiwa Bank Limited; the Singapore branch of the Industrial Bank of Japan Limited; the Singapore branch of the Sanwa bank limited, the statement said.

Under the deal, UTE will repay its $14.5 million debt in five years until 2004 with an initial prepayment of $1.7 million.

Interest payment will be made every three months with a principal payment every six months.

Another united of United Tractors, coal company PT Berau Coal, had signed a deal with its creditors to restructure a $40 million debt in March this year. (jsk)