Surabaya-based pulp and paper maker PT Surabaya Agung Industri Pulp & Kertas Tbk, known with Surya Kertas, plans to issue 2.06 billion new shares at Rp1,000 a share worth Rp2.06 trillion as part of debt to equity swap with its creditors.
Under the second of debt restructuring signed on June 10 2011 in Singapore, Surya Kertas will swap US$241.18 million debt into 2.06 billion new shares.
Responding the debt agreement, Surya Kertas jumped 16.67% to Rp245 per share, reflecting Rp845.25 billion market capitalization. Referring to the market capitalization, the rights issue will dilute 72.3% of Surya Kertas's existing shareholders.
Surya Kertas agreed to restructure of US$16 million tranche A, US$175 million tranche D, and others of US$50.18 million.
On October 5 2007, Surya Kertas reached the first debt restructuring with bilateral creditors of US$100.53 million and Rp180.82 billion, syndicated creditors of US$142 million and US$153.82 million and Rp247.98 billion interest.
The debt was converted into three tranche A (loan) of Rp348.36 billion, tranche B (convertible bond) of Rp84.52 billion, and tranche D (long term debt) of Rp1.52 trillion.
In the first quarter of 2011, Surya Kertas suffered negative capital of Rp826.35 billion. Surya Kertas's book value was -Rp239.48.
Surya Kertas is pulp and paper company and founded by Surabayanese businessman Tirtomulyadi Sulistyo. Its current production capacity is 300,000 metric tons annually.
Tirtomulyadi owns Surya Kertas via PT Intan Teguh Sejati which holds 6.02% of A series shares. ZT Holding Pte Ltd, previously creditor, owns 76.28% of B series shares, PT Bank Resona Perdania owns 6.13%, and public shareholders own 8,89%.
Disclosure: No position at the stock mentioned above.
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