Asia Pulp Agrees on Debt Settlement Plan With Gramercy Advisors
2009-05-08 09:51:36.489 GMT
By Arijit Ghosh
May 8 (Bloomberg) -- Asia Pulp & Paper Co., which defaulted on $14 billion of
debt after the 1998 Asian financial crisis, said it agreed to a debt revamp
plan with Gramercy Advisors LLC, one of the creditors.
Gramercy sold its debt to a "third party," and stopped all legal proceedings
against the Indonesian company and its units, Asia Pulp said in an e-mailed
statement in Jakarta today.
It didn’t give financial details or say who bought the debt.
Asia Pulp’s controlling Widjaja family has been wrangling with creditors since
freezing payments on the record $14 billion of debt in 2001. The latest
agreement follows a deal reached by Asia Pulp’s unit PT Indah Kiat Pulp &
Paper, with another creditor, Oaktree Capital Management LP in September. The
U.S.
Export-Import Bank is still fighting its case in courts.
