Inco to settle debt worth US$40 million on Sept. 30

PT International Nickel Indonesia Tbk (Inco) has agreed to pay debts worth US$40 million on September 30, next month as part of the gradual repayment of the company?s total debts worth US$421.25 million to its majority shareholder and creditors, Koran Tempo reported on Wednesday.

The company?s director Andre Daenuway said in Jakarta on Tuesday that of the US$40 million debt, about US$6 million would be repaid to its majority shareholder Canada-based Inco Limited and the other US$32 million to creditors including Japan?s Exim Bank.

"The other US$2 million will represent the interest payment of the debts," he told reporters following the company?s extra-ordinary shareholders meeting.

According to the company?s 2001 annual report, the company has debts totaling US$500.05 million comprising of US$421.25 million debts to Japan?s Exim Bank and other US$78.8 million to Inco Limited. Based on the company?s debt settlement agreement, the debts will be repaid 13 times and each repayment will be made in six months.

"With the settlement of the US$40 million debt in September, our total debts would decline US$270 million," Daenuway said, while denying rumors that the company suffered cash flow difficulties in settling its debts.

"At present we have cash worth about US$39.6 million and this well be enough to pay the debt installment in September," he added. (*)