JAKARTA - PT Magna Investama Mandiri Tbk (MGNA) has stopped operating a number of assets of its rice mill since December 30, 2019 related to operational and financial restructuring. As is known, the company's rice factory located in Ngawi was bought by PT Wilmar Padi Indonesia for Rp. 120.47 billion.
Quoted from the disclosure of company information, Soeni, President Director of PT Magna Investama Mandiri Tbk (MGNA), said that it stopped all factory operations that were operated by its subsidiaries. "This takes into account the company's financial condition and plans to carry out operational and financial restructuring through the release of a portion of the subsidiary's fixed assets," he said.
Land assets and rice mills owned by MGNA have been managed by its subsidiary, PT Padi Unggul Indonesia. As for the land assets that are sold for an area of 107,623 m2 with a number of buildings on it, among others, weigh bridge houses, dying factories, milling factories, rice warehouses, rice bran warehouses, and spare parts warehouses.
As a result of the sale of these assets, the company's liabilities decreased by IDR 107.98 billion, which came from third party bank loans of IDR 86.97 billion, related party bank loans of IDR 20 billion, and others of IDR 1 billion. MGNA's equity will also increase from a reduced deficit balance of Rp 20.40 billion. The sale value of these land and building assets is around 539.35% of the company's equity which has a deficit of Rp 22.37 billion, referring to the 30 September 2019 Financial Report. (LK)