The new shares would be offered at Rp570 each. The price was the average closing price of TBLA shares during 25 bourse days at the regular market, TBLA President Director Sudarmo Tasmin said here on Tuesday.
Sudarmo said the company would use proceeds from the share issuance to settle debts arising from derivative contracts and to make cash payments of US$3.5 million to UOB Key Hian.
Based on TBLA`s consolidated financial statement ended June 30, 2011, the company still had to settle debts totaling US$10 million from derivative contracts.
"The company can no longer afford to avoid default on liabilities payments to Citibank NA which is not an affiliated creditor. And based on the sales, purchase and assignment of claim receivables agreement dated July 28, 2011, Citibank NA has transferred claim right to UOBKH," he said in a written statement.
"The amount of the company`s debts to UOB Key Han after being reduced by cash payments reach US$6.5 million or an equivalent of Rp55.880 billion," he said.
(T.KR-SSB/S012/HAJM/A014)
Editor: Priyambodo RH
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