CAPITAL STOCK OPERATING EXPENSES
PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30,2005 AND 2004 AND FOR THE SIX MONTHS PERIOD THEN ENDED Continued
- 26 - three months, with the first installment due in 2001. This loan is secured by the Company‟s land
measuring 8,573.75 hectares and personal guarantees from Widarto and Santoso Winata and corporate guarantee from Sungai Budi group. This loan facility has been settled on June 24,2004
which financed from proceed of Bonds issuance. In 1991, BNIL obtained a loan facility from Bank Mandiri to finance the development program of
hybrid coconut plantations from 1991 to 1996. The facility has a maximum credit of Rp 13,950,000 thousand. The loan bears interest rate at 12 per annum and has a term of 12 years, including a
grace period of 6 years. This loan is secured by BNILs land and plantations measuring 4,000 hectares, inventories, buildings, machinery and equipment, receivables, and the rights and voting
power of all shares that have been and will be issued by BNIL. On March 3, 1994, Bank Mandiri confirmed to reschedule the repayment of the loan from 1997 until 2002, to 1999 until 2005.
The agreements relating to the above loans contain covenants which, among other things, restrict the rights of the Company and its subsidiaries to create any additional encumbrance on their
present or future assets; obtain any loans or grant any credit or guarantee; sell, lease or otherwise
transfer the Company and its subsidiaries‟ assets; conduct liquidation, merger, consolidation or reorganization; and change the nature of business. The syndicated bank loan agreement also
requires certain financial ratios to be maintained by the Company and its subsidiaries and restricts payment of dividend to the founding shareholders in certain amount. These agreements also
provide various events of default. Bank Negara Indonesia
On June 25, 2004, the Company obtained a working capital loan facility from Bank Negara Indonesia with maximum credit of 125.000.000 thousand which will be matured in June 2009 and
interest bearing 14 per annual. The loan facility is secured by corporate gurantee from PT Sungai Budi and personal gurantee
from Widarto and Santoso Winata.