Asia Pulp & Paper gets nod on plan to restructure debt

Article Abstract:

Asia Pulp & Paper Co. (APP), an Indonesian firm that sells pulp, photocopy paper and other paper products, will be able to restructure the terms of its $600 million debt to improve its financial flexibility. Bond investors agreed on Aug. 13, 1998, to let the firm restructure the terms of the floating-rate notes it issued primarily because of its good credit history. APP is one of the few Indonesian firms that has not missed any interest or principal payments on its debt in recent months. As part of the agreement, APP's controlling Widjaja family will no longer be binded to a pledge that requires them to set aside 50.1% of APP's shares as collateral backing the notes.

Comment:

Will be able to restructure the terms of its $600 million debt to improve its financial flexibility

Paper & Allied Products, Paper Manufacturing, Asia Pulp and Paper Company Ltd.

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APP gets nod on restructuring of terms of debt

Article Abstract:

Asia Pulp & Paper Co. (APP), the largest corporate borrower in Indonesia, has been allowed to restructure the conditions of the floating-rate notes, valued at $600 million, it has issued by its bond investors. The approval, given on August 12, 1998, allows APP not to pledge 50.1% of the company as collateral to support the notes. APP's bond investors allowed APP to restructure the conditions of the loan agreement after continuously paying the interests and principal payments of its debts in recent months.

Comment:

Is allowed to restructure conditions of the floating-rate notes, valued at $600 million, it has issued by its bond investors

Woodpulp & Related Products, Pulp Mills, Wood pulp industry, Asia Pulp and Paper Co.

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Asia Pulp & Paper gets nod on plan to restructure debt

Article Abstract:

A debt restructuring has been approved by bond investors for Asia Pulp & Paper Co. The restructuring requires allocating 50.1% APP shares as collateral to back the $600 million in floating-rate notes issued by the firm. The company is expected to use debt restructuring to provide it with greater freedom to use its equity. APP, a paper exporter, produces stable cash flows and obtains benefits from a depreciating rupiah.

PAPER AND ALLIED PRODUCTS, Paper & Paperboard, Pulp, Paper, and Paperboard Mills, Finance, Paper products industry, Asian Pulp & Paper Co.

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