Wicaksana debt talks near completion

Wicaksana debt talks near completion

JAKARTA (JP): PT Wicaksana Overseas International, one of the
country's major consumer product distributors, said on Thursday
negotiation on the restructuring of its US$131 million debt was
nearing completion.

The company's finance director, Ekahadi Djaya, said the
negotiations on the debt restructuring, which started early last
year, had been intensified in the last three months.

He said the initial results of debt talks with the creditor's
steering committee had been encouraging. The committee comprises
representatives from seven major banks: Citibank, American
Express Bank, ANZ Panin Bank, Fuji Bank, HSBC, ING Bank and
Rabbobank.

"Bankers have been very supportive of the restructuring plan
and we hope an initial agreement can be reached later this
month," he told The Jakarta Post.

He said the debt restructuring package would include a "Dutch"
auction, up front cash payments, commercial loans and a debt to
equity swap.

"After the debt restructuring, the company's balance sheet
will become healthier and its capital structure will be
strengthened."

Wicaksana also reported on Thursday a net profit of Rp 128.5
billion (about $18.3 million) in the first semester ending in
June, swinging from a net loss of Rp 569.3 billion in the same
period a year earlier.

Ekahadi attributed the turnaround in the company's profit to
an improvement in the demand for consumer goods beginning in
March this year.

He said net sales rose by 72.4 percent or Rp 1.27 trillion in
the January-June period, from Rp 737.2 billion in the same period
last year.

The company projected this year's net sales would increase by
about 40 percent or Rp 2.6 trillion due to increased demand on
the domestic market.

"With improvements in the social, economic and political
situation, the management believe that the company will achieve
the full year sales target," he said. (hen)