Salim, Gajah Tunggal agree to transfer assets to pay debt: Indonesia is poised to recoup $7 billion; accords assist in moves to recapitalize the sector

Article Abstract:

The Indonesian government is scheduled to recover some $7 bil in loans extended to two Indonesian conglomerates, the Salim Group and the Gajah Tunggal Group. Both conglomerates promised to repay their debts to the government by surrendering full or partial control of subsidiaries in return for emergency credits to prop up both conglomerates' banking subsidiaries. The Salim Group is expected to repay some 35 tril rupiah (3.19 bil) by offering the government stakes in some of its successful subsidiaries, while the Gajah Tunggal Group is expected to repay some 30 tril rupiah. The government remains unsuccessful in going after some of its other big creditors, such as timber tycoon Mohamad Hasan and Usman Admadjala.

Administration of Urban Planning and Community and Rural Development, Economic Development NEC, Finance, Political aspects, Economic development, Commercial loans

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Salim, Gajah Tunggal agree to transfer assets to pay debt

Article Abstract:

Salim Group and Gajah Tunggal have agreed to hand over stakes in 166 companies to Indonesian--controlled holding companies. Included in the stakes to be ceded are 100% of one of the world's largest shrimp producers and Southeast Asia's biggest tire producer, as well as stakes in 104 Salim companies that dominated Indonesia's economy during the rule of former President Suharto. The massive transfer of assets is part of a repayment agreement with the Indonesian government over the emergency loans extended to Salim and Gajah's banks.

Comment:

Along w/ Salim Group, has agreed to hand over stakes in 166 companies to Indonesian-controlled holding companies

Diversified Companies, Financial management, All Other Basic Organic Chemical Manufacturing, Acyclic Chemicals, Aliphatic compounds, Article

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Indofood stirs up interest

Article Abstract:

Noodle maker Indofood Sukses Makmur is considered to be one of the best investments available in the Indonesian stock market. The company's dominant position in noodles and baby food make it a good buy given the expected increase in consumer spending in Indonesia. With analysts predicting sharply higher profits, Indofood's stock is likely to continue rising in 1999, buoyed as much by the economic recovery as by the holding of elections that pave the way for the election of a new president by the end of the year.

Securities prices, Macaroni, Spaghetti & Noodles, Dry Pasta Manufacturing, Securities, Pasta products, Cereal products industry, Company Profile, Pasta industry, Indofood Sukses Makmur P.T.

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