JAKARTA. PT Ifishdeco Tbk (IFSH), a nickel mining company in Southeast Sulawesi, has signed an agreement with one of its subsidiaries, PT Bintang Smelter Indonesia (BSI), to convert debts to equity.
Based on the explanation of IFSH management, said agreement is made to convert BSI’s debts worth IDR 239.64 billion to 24.61 million shares. “Therefore, the company now has a claim over 34.61 million shares of BSI, worth approximately IDR 337.01 billion in total,” the management said in the information disclosure in Indonesia Stock Exchange (IDX).
For the record, these converted debts originate from a loan agreement signed by BSI and IFSH on December 18, 2015. Then, BSI and IFSH have agreed to alter said agreement on January 25, 2019.
The management of IFSH mentioned that this debt conversion is intended to cut off the financial expenses of IFSH and its subsidiary. “Considering how said subsidiary has both negative net working capital and equity,” the management further added.
Based on idnfinancials.com data, IFSH’s stock price on yesterday’s (8/12) trading session was closed at IDR 1,015 per share. Since the beginning of this year (year-to-date/ytd), the stock price of IFSH plummeted 52.57% or 1,125 points lower from IDR 2,140. (KR/ZH)