Indon govt puts pressure on TriPolyta to resolve bond row

25 November 2002 00:00  [Source: ACN]

The Indonesian government is putting pressure on TriPolyta to resolve the dispute between the PP player and its bondholders, ACN understands.

Last week, the Jakarta Initiative, a quasi-governmental body formed to help the debt-restructuring dialogue between debtors and creditors, held a meeting with TriPolyta officials to discuss how the PP player could expedite an out-of-court settlement with its bondholders, ACN was told.

TriPolyta and its bondholders are attempting to reach an out-of-court settlement on a breach-of-contract complaint filed by the bondholders in the District Court of New York. The complaint was filed because TriPolyta has made no interest or principal bond repayments for more than a year.

The court case has been dragging on for more than a year, with the New York court deferring four times its ruling on the breach- of-contract complaint.

The bondholders filed their complaint on 12 October 2001, requesting the court to order TriPolyta to pay US$253.57m for the bonds, which includes accrued interest. The face value of the bonds is US$180m.

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