Asia Pulp & Paper Co (APP) has signed a US$6.7 billion restructuring agreement with key creditors. But the filing of a lawsuit in New York by the US Export-Import Bank against APP showed not all creditors are happy with the deal, and a full agreement could still take time.
The company signed a master restructuring agreement on Thursday with creditors led by nine foreign government export-credit agencies - including those of Japan and several European nations - and the Indonesian Bank Restructuring Agency (IBRA), a government body, which is APP's largest creditor.
Creditors holding about 40% of the US$6.7 billion debt , the amount owed by APP's Indonesian companies, signed the agreement, said IBRA chairman Syafruddin Temenggung. APP creditors holding at least 90% of debt must vote in favour of the plan before it becomes effective under the terms of the agreement.
