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)