Aug 18, 2010

Mobile-8 converts Rp60 bio debt

CDMA-based cellular operator PT Mobile-8 Telecom Tbk (FREN) has converted its debt worth Rp60 billion into stocks as part of restructuring scheme of Rp2 trillion total debt.
The operator strives to restructure the remaining debts which will be conditional for further synergies requrements with another CDMA-based operator Smart Telecom under Sinarmas Group.
Mobile-8 Corporate Secretary Chris Taufik said the operator strives to restructure Rp600 billion total debt. Most of the debt maturity has been extended from 2012 to 2017.
"Of Rp675 billion, we have converted the debts into equity of about 10% shares," he told Bisnis.com yesterday.
Despite rupiah denominated bonds restructuring, Mobile-8 is also underway to settle US dollar denominated bonds. "Smart Telecom is waiting for Mobile-8 debt restructuring before they add more equities into Mobile-8. Smart Telecom remains minority share holder via PT Gerbangmas Tunggal Sejahtera," he said. 

Disclosure: No position at the stock mentioned above.

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