16 August 2002 06:24 [Source: ICIS news]
SINGAPORE (CNI)--Indonesian polyester producer PT Polysindo Eka Perkasa is having difficulty securing additional letters of credit (LCs) from Bank BNI to buy higher volumes of paraxylene (PX) and monoethylene glycol (MEG) feedstock, a company source told CNI on Friday.
The source said the company needed to buy more feedstock because it was now running its purified terephthalic acid (PTA) and polyester plants at above 100% capacity due to bullish markets, compared with 80% in the same period last year.
Polysindo currently has a fixed LC with Bank BNI, but has been asking for additional credit lines for the past three to four months.
The source added the company might be forced to lower its operating rates if it failed to secure the additional LCs from BNI Bank. He refuted market talk that Polysindo might resort to shutting down its plants.
Polysindo is producing 350 000 tonne/year of PTA for polyester production, including 280 500 tonne/year of polyester fibre chip and 100 000 tonne/year of polyester staple fibre (PSF) in Karawang, West Java.
CNI's sister publication Asian Chemical News earlier reported that Polysindo had again delayed the implementation of a final plan to restructure the company's $450m unsecured bonds by 2-3 months to the end of this year.
Polysindo began its debt restructuring efforts in August 1998, when the company first went into default with debt totalling $1.13bn.
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