Denied Polysindo Plan

The State Assets Management Corporation (PPA) has rejected the debt to equity conversion of PT Polysindo Eka Perkasa Tbk as it has cut the principle of the debt.
PPA has 28% out of the total secured loan of Polysindo as much as US$1 billion. Polysindo also has US$630 million of unsecured loan.
The President Director of PPA Mohammad Syahrial said that the debt to equity conversion program of Polysindo is not accountable.
"The Polysindo-style restructuring is unacceptable," he told me last week.
He said PPA cannot accept the restructuring offer of Polysindo.
PPA Corporate Secretary Renny O Rorong said PPA did not attend the EGMS of Polysindo on February 21. "We did not attend the EGMS. On whether they would like to seek loan, it is a matter of corporate action."
The EGMS has approved reverse stock program of Polysindo at the ratio of 1:20 as the part of the debt conversion program.
For the unsecured loan the company issued 43 billion shares that have been traded since October 2007.
But there has not been any solution regarding with 28% out of US$1 billion of secured debt of Polysindo.
After the reverse stock program Damiano BV still become the controlling shareholder (59.83%) shares of Polysindo. The rest consist of A series stocks that belong to PT Multikarsa Investama (5.53%) and the public (3.71%) and C series of stocks that belong to the public (9.07%).