INDONESIA: Indorayon Debt Restructure Put On Hold
Plans to restructure the debt of troubled pulp and rayon fibre maker PT Inti Indorayon Utama (IIU) cannot be implemented as its creditors want to wait until it resumes operation, a company official said.Lennardi Anggijono, a company director, said a plan to restructure the US$293 million debts had been sent to the Capital Market Supervisory Board (Bapepam) and the Jakarta Stock Exchange (JSX). The debt includes Rp72bn (US$8m) in loans from banks and US$825m in bonds.Lennardi said the company management could not say when the debt could be restructured although it has been allowed to operate its pulp production facility. Its rayon fibre plant is not yet allowed to operate as it is seen as the main cause of environmental issue that caused its problems.The company's US$600m factory in North Sumatra has been lying idle for more than two years over environmental and social disputes.Its shareholders in a meeting on Wednesday changed the name of the company to PT Toba Pulp Lestari and at the same time decided to replace the management when it resumes operation to allow the local people to take part in the management.The new chief commissioner is Julian Christopher Hill and the president is Bilman Philipus Butarbutar.
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