PT Timah offers haircut for settlement of its loans to BPUI
Wednesday, February 7 2001 - 03:30 AM WIB
State tin miner PT Timah president Erry Riyana Harjapamekas said his company had been offering "hair cuts" of up to 50 percent for the repayment of its loans to PT Bahana Pembina Usaha Indonesia (PT BPUI).
"The size of the hair cuts will depend on the period of the repayment, the shorter the period, the larger the hair cuts we will offer, the longer, the smaller. In any case, it will not more than 50 percent," Erry said on Tuesday (Feb. 6).
The repayment of PT BPUI's debt to Timah would depend on the result of the company's debt restructuring program currently pursued by the Indonesian Bank Restructuring Agency (IBRA), Erry said.
Erry also disclosed the company's plan to expand its mining operation into a number of neighboring countries, such as Malaysia, Thailand, Vietnam and Myanmar. Timah has even signed a memorandum of understanding with Myanmar authority to explore mining potentials in the country.
The planned mining expansion aimed at increasing the company's mineral reserves, which had been depleting from years to years.
When asked about Timah's plan to acquire PT Indocoal, Erry said that Timah was still undergoing due diligence on Indocoal. But he refused to give further details. (*)