TPPI, creditors sign agreement on debt payment restructurization

Petrochemical firm PT Tran Pacific Petrochemical Indotama (TPPI), a subsidiary of Tuban Petro Group, and a number of government-related creditors have signed a master restructuring agreement (MRA) as a legal framework to restructurize the payment of the Group's debts to the government.

The company said in Jakarta on Friday that the signing was conducted in the office building of the state-owned company PT Perusahaan Pengelola Aset and was attended by representatives from the Ministry of Finance and Ministry of State-Owned Enterprises.

The government-related creditors include the Ministry of Finance, which is represented by PT PPA, state-owned oil and gas company Pertamina, and the upstream oil and gas regulator BPMIGAS.

The company said that the MRA stood as a legal framework for a comprehensive restructurization of Tuban Petro Group's debts with financing to be provided by Deutsche Bank and other sponsors. The government institutions being the creditors will get cash payment at the value of US$400 million and Rp1 trillion, consisting of multi year bond at the value of Rp 1 trillion to PPA, a debt of US$300 million to Pertamina, and a debt of US$100 million to BPMIGAS.

The restructurization is a special solution to the Tuban Petro Group's debts, and its other debts will be restructurized in the next second phase as has been required by the Deutsche Bank. (godang/giok)