TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
WIKA strikes $1.54 billion debt restructuring deal with 11 lenders
The struggling state-owned construction firm said in a statement on Wednesday that 11 financial institutions had agreed to the deal, which covered 87.1 percent of its restructured debt.
Change Size
Two workers of PT Wijaya Karya Beton check precast concrete pipes at a factory in Cileungsi, Bogor, West Java, in this file photo dated Jan. 23, 2014. (Antara/M Agung Rajasa)
P
ublicly listed state-owned construction firm PT Wijaya Karya (WIKA) secured a debt restructuring deal worth Rp 24.2 trillion (US$1.54 billion) with 11 financial institutions through a master restructuring agreement (MRA), the company said in a statement released on Wednesday.
The agreement covered 87.1 percent of WIKA’s restructured debt, the company said, and was a step forward in improving the company's financial condition.
Two of the company’s board members and the heads of the 11 lenders signed the agreement on Tuesday, which was overseen by Deputy State-Owned Enterprises (SOEs) Minister Kartika Wirjoatmodjo and WIKA president director Agung Budi Waskito.
The lenders “believe that WIKA is capable of recovery and is willing to participate in the effort”, Agung said in the statement.
“With the MRA in place, the company can now focus on proceeding twth other [recovery streams] to achieve strong fundamentals and sustainable business operations.”
Read also: Waskita’s toll road projects will take 10 more years, govt says
In addition to its debt restructuring efforts, WIKA also plans to strengthen its capital structure through a rights issue, offering 92.24 billion new shares at Rp 100 each to the public, according to its disclosure on Tuesday on the Indonesia Stock Exchange (IDX) website.
