Jakarta –
PT Krakatau Steel (Persero) Tbk revealed that it will sell the shares of Subholding Krakatau Sarana Infrastruktur (KSI). This was done to pay off debts that matured this December.
Krakatau Steel’s Finance Director Tardi said the proceeds from the sale of KSI’s shares were made to fulfill the obligation to pay a working capital debt of US$ 200 million or Rp 2.8 trillion (exchange rate of Rp 14,200). The debt comes from Bank Mandiri, Bank Negara Indonesia (BNI), and Bank Rakyat Indonesia (BRI).
“Currently we are in the final stages of negotiations for both bidder the. Krakatau Steel must ensure that this process complies with applicable laws and regulations in order to create good corporate governance. In addition, the management of Krakatau Steel must also pay attention so that the interests of Krakatau Steel are maintained in this process,” Tardi explained, in his statement quoted on Saturday (4/12/2021)
Tardi also revealed that currently there are two bidder which have included prices, namely from the Indonesia Investment Authority (INA) and a consortium of Asset Management Companies (PPA).
He added that in completing these negotiations, caution and care are needed so that the legal and business aspects are fulfilled which will later be beneficial for the parties involved.
When the process is complete, both the INA consortium and the PPA consortium are committed to completing the payment in December 2021. Through this payment, Krakatau Steel can fulfill its debt obligations in December 2021.
“Krakatau Steel will continue to maintain the company’s ability to pay debts through a series of company strategic initiatives. This debt management is carried out very carefully and refers to the restructuring credit agreement signed in January 2020 with 10 creditors,” he said.
“Krakatau Steel has paid debt installments of Rp 444.7 billion after the debt restructuring, which consists of Tranche A debt resulting from the debt restructuring agreement with Krakatau Steel of Rp 258 billion and debt installments to Commerzbank of Rp 186.7 billion,” concluded Tardi.
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