Troubled Asia Pulp & Paper (APP) has set a timetable for the restructuring of its liabilities which could take up to March 2002.


The announcement came after a behind-closed-doors meeting of creditors held in Singapore (12 April).


Once the final creditor steering committee structure has been approved, financial information will be provided to creditors in May.


An update and audited financial statement for 2000 is to be issued in June.


APP parent Sinar Mas Group also wants to borrow a further 139m ($200m) after the revelation that its overall debt had grown from 8.4bn to 9.3bn.


The Indonesian government attended the creditors meeting after taking over the 905m debt owed by APP and its sister companies to PT Bank International Indonesia.


This debt was not previously accounted for on APPs balance sheets, causing concern that more debts may be uncovered as the situation continues.


A Sinar Mas executive said the 139m loan would help boost the output of the groups pulp and paper units, which had experienced a slowdown due to the reluctance of suppliers and insurers to increase their financial exposure to APP.


The company could be seeking new creditors to generate additional working capital in order to stabilise its operations.


Story by Andy Scott