Aug 20, 2010

Kertas Basuki to hold rights issue

A distressed paper manufacturer PT Kertas Basuki Rachmat Indonesia Tbk (KBRI) is considering to hold rights issue in the second half of this year. The proceed will be utilized buy Kertas Basuki to pay US$38.5 million loan to Quest Corporation.
"We have plan to hold rights issue and the proceed will be used to pay loan facility to Quest Corporation," Kertas Basuki Rachmat, KBRI subsidiary, President Director Theo Satria Chairuman said.
But, he declined to mention the rights issue size. According to him, several potential institutions are interested to become standby buyers for the rights issue.
KBRI is also in talks with several banks in a bid to secure US$50 million loan facility which will be used to bankroll paper machine program.
Disclosure: No position at the stock mentioned above.

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