Mitra International to sell Apexindo stake to repay debts

PT Mitra International Resources Tbk has decided to sell part of its share ownership in PT Apexindo Pratama Duta Tbk to repay debts, Kontan reported Monday.

Besides selling a part of the company?s shares in Apexindo, Mitra would also ask its bond holders to extend the maturity of the bonds to save the company from bankruptcy. Mitra has so far defaulted bond payments worth Rp 1 trillion (1US$ = Rp 9,050).

?We need to increase the equity in order to reduce our exposure to debts. That?s why we plan to divest Apexindo shares,? Dewanto Koentjaraningrat, Mitra?s director said last week.

Earlier, Mitra Rajasa had said that it is in talks with four companies to sell its share in Apexindo. Mitra plans to offer 31.4% of its share in Apexindo to new investor.

But he did not disclose the amount of Apexindo shares to be sold. At present, Mitra controls a 98.14 percent stake in Apexindo through its subsidiary PT Sabre System International Pte.Ltd.

PT Sabre bought Apexindo?s 98.14 percent stake for US$68.17 million from PT Medco Energi International as part of its expansion plan in oil and gas exploration activities .

The bonds are part of Mitra?s outstanding debts which reached $130.65 million. Due to its huge debts, the company suffered a loss of about Rp 950 billion. (*)