PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2004 and 2003 Expressed in rupiah, unless otherwise stated
33
11. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIONS continued
As specified in the HZMFA, the restructured loans are securedcollateralized by the following: •
All of the above- mentioned escrow accounts maintained in JPMorgan Chase Bank, N.A., including all time deposit and demand deposit placements made from the funds in the escrow accounts.
• All receivables of the Company.
• All land, buildings, site improvements and other fixtures owned by the Company, except for:
- Cement plants 6, 7 and 8, including their supporting facilities and land
- Land where cement plants 1 and 2 are located
- Quarry and the expansion of the Citeureup cement plants, including the land located within
Kecamatan Citeureup, Cileungsi, Cibadak and Jonggol •
Fiduciary transfers of all proprietary rights over the inventories, and plant and equipment owned by the Company, including the related insurance coverage andor proceeds from insurance recoveries .
• Shares of Indomix and DAP.
Total principal payments made amounted to Rp540,177,486,834 in 2004 and Rp298,868,359,077 in 2003.
Total interest payments made by the Company through its escrow accounts amounted to Rp174,098,391,477 consisting of US9,000,980, JP¥1,002,920,366 and Rp11,162,759,749 in 2004
and Rp233,059,896,224 consisting of US15,787,982, JP¥1,030,389,442 and Rp20,055,059,549 in 2003, while the unpaid interest charges amounting to Rp29,685,047,977 and Rp32,362,435,599 as of
December 31, 2004 and 2003, respectively, are presented as part of “Accrued Expenses” in the consolidated balance sheets.
As of December 31, 2003, the outstanding balance of the restructured debt amounted to Rp5,290,165,509,308 equivalent to US624,945,719. Since the Company was able to reduce its debt
below the target debt level equivalent to US700 million before December 31, 2003 and as confirmed by the Facility Agent on December 24, 2003, the Company, among others, can use at its own discretion,
50 of any excess money in the escrow account after the prepayments of the principal loan installments and interest payments. The remaining 50 of the excess should be used in the early
repayment of the debt prepayment. In addition, the Monitoring Accountant’s role has been limited to only performing monthly reviews of the Company’s cash sweep mechanism to the escrow account. In
2004, total prepayments made amounted to US39,523,500 equivalent to Rp352,956,439,436.
Prior to the achievement of the target debt level, any excess money in the escrow accounts after the principal loan installment repayments plus interest payments should be used as the early repayment of
the debt prepayment with the maximum annual prepayment of US27,000,000 in 2002; US25,500,000 in 2003; US28,500,000 in 2004; US21,500,000 in 2005; US16,500,000 in 2006; and
US24,000,000 in 2007. Total prepayments made amounted to US25,500,000 equivalent to Rp227,536,762,873 in 2003. Any excess funds available in the escrow accounts after the above
maximum annual prepayment will be used for debt buy -back.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2004 and 2003 Expressed in rupiah, unless otherwise stated
34
11. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIONS continued
