JAKARTA. PT Krakatau Steel (Persero) Tbk (KRAS) intends to complete the restructuring of its US$ 2.2 billion debt by the end of 2019. This is the largest debt restructuring in Indonesia, according to Silmy Karim, President Director of KRAS.
"There is a potential that it may be completed no later than January 2020," Karim said when met by idnfinancials.com on Friday (13/12) today.
Karim explained that the US$ 2.2 billion debt was given by 4 banks, PT CIMB Niaga Tbk (BNGA), Standard Chartered, PT Bank OCBC NISP Tbk (NISP), and PT Bank DBS Indonesia. Karim stated that the value was about 22% of the total debt that will be restructured by the company.
"When this is finished, KRAS can finally has the space to be able to reorganize its management, production, to improve KRAS' performance," Karim explained.
For the restructuring, KRAS has requested for the tenor of the debt to be extended to 10 years. But Karim was reluctant to mention the interest adjustment agreed in this restructuring. "Regarding its value and percentage (interest), we cannot disclose," Karim said.
Karim stressed that KRAS was also intending to sell a number of its assets which were considered unproductive to help pay some of its debt. (KR/AR)