PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004 and 2003 Expressed in rupiah, unless otherwise stated
33
11. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIONS continued
The above debts represent restructured debts under the Post HZ Entry Master Facility Agreement HZMFA dated December 29, 2000. The HZMFA provides for, among others, the mechanism,
amounts and schedules of loan installment repayments, collateral, interest rates, restrictions on granting of guarantees or loans, issuance of warrants to the lenders, restrictions on issuance of new
shares or other securities, restrictions on declarations and payments of cash dividends without prior written consent from the creditors, restrictions on capital expenditures, appointment of monitoring
accountants, determination and transfer of surplus cash, and restrictions on derivative transactions.
Under the HZMFA, the Company, and all the lenders appointed BA Asia Limited BAAL to act as the Facility Agent, JPMorgan Chase Bank, Jakarta Branch to act as the Security and Escrow Agent, and
The Bank of America N.A., JPMorgan Chase Bank, The Fuji Bank, Limited and BNP Paribas to compose the Monitoring Committee. In April 2002, the Company received a letter from BAAL
regarding the resignation of BAAL and The Bank of America N.A. as part of the Monitoring Committee, and their replacement by Marubeni Corporation. Also, in December 2002, the Company was notified
by JPMorgan Chase Bank that starting on December 10, 2002, the role of Facility Agent had been transferred from BAAL to JPMorgan Chase Bank.
The HZMFA also requires the Company to: •
Establish and maintain escrow accounts in JPMorgan Chase Bank. Usages or withdrawals of funds from these escrow accounts shall be subjected to strict monitoring and review by the
monitoring accountants.
• Maintain an aggregate balance for all other current bank accounts other than the current bank
accounts agreed by the lenders in an amount not exceeding the working capital buffers as defined in the HZMFA.
In compliance with the above requirements, the Company opened and maintains eleven 11 escrow accounts with JPMorgan Chase Bank. The balances of deposits maintained in such escrow accounts
amounted to Rp 422,687,285,129 consisting of Rp 2,981,769, US 40,461,838 and JP¥ 625,000,000 as of September 30, 2004, and Rp 548,514,320,190 consist of Rp 43,359,024,313 and
US 60,216,390 as of September 30, 2003 which are presented as part of “Restricted Cash and Time Deposits” in the consolidated balance sheets.
Furthermore, as stated in the HZMFA, the loan repayment installments would be as follows: i Fixed quarterly installment payments totaling US 10,500,000 in 2002; US 33,500,000 in 2003;
US 58,750,000 in 2004; US 78,500,000 in 2005; US 84,500,000 in 2006; US 87,250,000 in 2007; and US 22,000,000 in 2008 final.
ii Quarterly payments equal to the amount of cash available in the above-mentioned escrow accounts after the payments or applications required under the HZMFA.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004 and 2003 Expressed in rupiah, unless otherwise stated
34
11. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIONS continued