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Bank Mutiara restructures Rp 135.8b in loans
Bank Mutiara, previously Bank Century, restructured Rp 135
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ank Mutiara, previously Bank Century, restructured Rp 135.8 billion (US$ 11.8 million) in non-performing loans (NPLs) it inherited from its previous management in the first quarter of 2014.
'The restructuring results were later recorded as revenues and contributed to the company's profits,' Bank Mutiara corporate secretary Rohan Hafas said in Jakarta on Tuesday as quoted by Antara.
He said that the successful restructuring of a number of bad loans was achieved through various efforts, such as by pushing debtors to pay their debts in installments; selling foreclosed assets (AYDA) and collecting payment from debtors granted debt write-off from the bank.
Meanwhile, the payment of loans conducted by company debtors amounts to Rp 131.5 billion or 12.9 percent of Rp1.02 trillion in NPL, which had burdened the company at the end of last year.
Among debtors inherited from Bank Century management, which paid their debts in installments were Akasia Prima, Cahaya Adiputra Sentosa, Polymer Spectrum Sentosa, Selalang Prima International and Trio Irama, with a total payment amounting to Rp 110.7 billion. Meanwhile, Rp 20.8 billion in payments were from retail debtors.
Other revenues were from the selling of AYDA worth Rp 2.2 billion and Rp 2.1 billion from debtors that got debt write-offs.
Such successful restructuring boosted Bank Mutiara's work performance, reflected in its revenues in the first quarter of 2014, which amounted to Rp 12.1 billion.
However, there are several other debtors that have not yet shown goodwill to settle their debts. They include Catur Karya Manunggal, Enerindo Resources, Millienium Anugerah Sakti and Sentra Ideologis.
'The successful restructuring of the NPLs of a number of bad debtors is proof of our management commitment and seriousness in increasing Bank Mutiara's health and work performance to support the divestment program being carried out by the Deposit Insurance Corporation (LPS) as the bank's shareholder," said Rohan. (ebf)
