Troubled Asia Pulp and Paper (APP) has appointed Credit Suisse First Boston to help with the restructuring of its 8bn ($12bn) debt (PrintWeek, 23 February).


APPs troubles started to come to a head last month, when its subsidiary, PT Pabrik Kertas Tjiwi Kimia, missed two coupon payments totalling 29.3m on 135m of bonds due to mature in August.


APPs annual interest payments are estimated to be around 680 m.


PT Pabrik Kertas Tjiwi Kimia made a 20.6m payment within a 30-day grace period, but the company has come under increasing pressure from its bankers, creditors and suppliers to restructure its outstanding debts and offload non-core asset businesses. JP Morgan will also assist in the sale of certain assets.


APP has also been the subject of on-going speculation concerning a possible purchase by Stora Enso of its Indonesian and Chinese interests.


An agreement for the purchase of APPs Indian Paper mill has already been signed with two unnamed international companies and Indias Lalit Mohan Thapar group.


APP is controlled by the Sinar Mas Group, Indonesias second largest conglomerate, which is owned by the Widjaja family. Its largest cash earning business is the pulp and paper operations.


Story by Andy Scott