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Bakrie Sumatera to swap debt to equity
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An aerial view of an oil palm plantation in Dumai, Riau. (Antara Photo/Rony Muharrman)
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ublicly listed oil palm and rubber plantation company PT Bakrie Sumatera Plantations (UNSP) plans to restructure its debt by issuing non-preemptive rights to the company’s creditors to turn some of its debts to equity by the first half of 2018.
“We are making an offer to our creditors. Instead of receiving interest payment, they can get shares that we will issue,” UNSP director Andi W. Setianto said on Thursday.
Andi added the company was currently restructuring its capital to improve the company’s financial performance.
The company aimed to convert Rp 338 billion (US$23.66 million) of debts into shares for its creditors.
The company’s extraordinary shareholders meeting on Thursday failed to reach an agreement on the company’s debt restructuring programs, including debt-to-equity swap, because the number of participants did not meet the quorum.
UNSP’s 2017 third quarter financial report shows that the company’s total liabilities stood at Rp 13.9 trillion — Rp 11.29 trillion of short-term liabilities and Rp 2.67 trillion of long-term liabilities. (ami/bbn)
