APPs creditors reject proposal for repayment

A group of key creditors of debt-laden Asia Pulp & Paper (APP) has rejected the terms of a repayment deal, putting in doubt a resolution to the companys financial woes (<i>PrintWeek</i>, 23 February 2001).

The bondholder committees steering group, which represents about 1.7bn ($2.8bn) of APPs 9bn debt, expressed severe concerns about recent developments in the companys debt restructuring programme.

The work-out process is being led by the Indonesian Bank Restructuring Agency (IBRA), and the bondholders were worried that the deal didnt include sufficient measures to ensure that the Widjaya family, APPs founding shareholders, stuck to the repayment terms of any agreement.