Sep 16, 2011

APOL files composition plan to court

Defaulted shipping company PT Arpeni Pratama Ocean Line Tbk (APOL) has proposed a composition plan to its creditors to Central Jakarta District Court. 
The court has also granted a request of debt payment postpone (PKPU) proposed by PT Bank Central Asia Tbk (BBCA) on Arpeni Ocean Line. In return, Arpeni can continue its debt restructuring with its creditors.
Arpeni, tottering shipping company from derivative transactions losses and cripped by debt, aims to raise US$95 million from shares issuance without preemptive rights and zero coupon convertible bonds issuance (so called CB 2011).
Arpeni Line, that is controlled by Indonesian businessman Oentoro Surya which has relations with Hadi Surya, owner of PT Berlian Laju Tanker Tbk (BLTA), will issue a maximum of 6.25 billion of B series shares at Rp120 a year worth US$75 million to its controlling shareholder PT Mandira Sanni Pratama (MSP) or other parties which will be mandated by the MSP.
Regarding to Rp8,991 per 1US$, Arpeni will issue 5.62 billion shares. Arpeni intends to use US$30 million of the rights issue proceed to support a buyback programs of 8.75% US$ guaranteed secured notes and US$45 million will be used for working capital.
Arpeni also aims to issue 6-year CB-2011 worth US$20 million, entitling holders to convert the CB into a maximum of 719.28 million shares at the exercise price of Rp120 a year. Referring to the rate of Rp8,991 per 1US$, the conversion price is Rp250 per share.
Arpeni plans to issue series I of 2.54 billion warrants which will be distributed to holders of guaranteed notes or bond II/2008 or MTN ijarah II/2008, and other creditors.
To realize the corporate actions, Arpeni is seeking approval from a shareholders meeting scheduled on June 28 2011.
As of April 2011, Arpeni Line is 30.67% owned by The MSP, 21.04% of PT Ayrus Prima, 8.67% and 9.81% of DEG-Deutsche Investitions -US and Morgan Stanly & Co Intl. Plc respectively, and public holders of 29.81%.
In 2010, Arpeni's net loss widened to Rp1.64 trillion from Rp670.61 billion in 2009. Revenue fell to 1.39 trillion from Rp1.72 trillion. Mandira Sanni Pratama is 99.98% owned by Oentoro Surya and PT Ayrus Prima holds the remaining. Oentoro Surya is acting as president commissioner, Mia Sitaresmi Surya and Joy Paramita Surya are president director and director at the company.  Mandira Pratama suffered a Rp440.74 billion net loss last year and revenue of Rp239.62 billion. 
Arpeni has obtained unsecured loan facilities from several creditors such as PT Mizuho Indonesia with Rp100 billion facility, PT Bank DBS Indonesia with Rp32 billion and US$5.99 million facilities, PT Bank Internasional Indonesia Tbk with US$20 million facility, PT Bank Central Asia Tbk with Rp50 billion facility, and Bank of Tokyo-Mitsubishi UFJ Ltd with US$15 million facility.

Disclosure: No position at the stock mentioned above.

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