Indon cabinet asks for audit on ailing Texmaco Group

17 November 2003 00:40  [Source: ICIS news]

JAKARTA (CNI)--The Indonesian cabinet has asked the Ministry of Research and Technology to conduct a technology audit before deciding on how to restructure ailing polyester and engineering group Texmaco.

A spokesman for the Indonesian Bank Restructuring Agency (Ibra) said Texmaco's restructuring scheme might be altered as las as it would bring benefit to the country.

Texmaco has liabilities Rp29.04trn ($3.40bn/Euro2.87bn) to Ibra. Under the current restructuring agreement former Texmaco owner Marimutu Sinivasan has undertaken to inject $25m in working capital into the group. However, that has not yet been forthcoming and Sinivasan himself has a debt of Rp1.3trn as the former owner of a bank which has been closed down by the government.

Texmaco's assets consist of its textile and chemical group which is valued at Rp7.84trn and its engineering group which has a value of Rp21.2 trn.

Under the restructuring scheme, Ibra controls a 70% stake in the textile group, while Sinivasan holds a 30% share. The engineering group is 100% controlled by Sinivasan.

Ibra tried earlier this year to dispose of the restructured assets in two open bids, but failed to find a bidder. Ibra then decided to ask the Indonesian cabinet to make decision on the group.

By: Jack Lukup
+65 6780 4359

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