PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
32
11. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIONS continued
The interest rates per annum for the above indebtedness are as follows:
2005 2004
Japanese yen 2.30 - 3.70
2.30 - 3.80 U.S. dollar
3.37 - 5.62 3.12 - 3.63
Rupiah 7.87 - 8.44
7.81 - 9.37 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, N.A. formerly The Chase Manhattan Bank, Jakarta Branch
to act as the Security and Escrow Agent, and The Bank of America N.A., JPMorgan Chase Bank, N.A., 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, N.A. that starting on December 10, 2002, the role of Facility Agent had been transferred from BAAL to JPMorgan Chase
Bank, N.A.
The HZMFA also requires the Company to: •
Establish and maintain escrow accounts in JPMorgan Chase Bank, N.A. 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, N.A. The balances of deposits maintained in such escrow
accounts amounted to Rp425,144,756,124 consisting of Rp2,356,800, US31,943,397 and JP¥1,050,009,103 as of September 30, 2005, and Rp422,687,285,129 consisting of Rp2,981,769,
US40,461,838 and JP¥625,000,000 as of September 30, 2004 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 US10,500,000 in 2002; US33,500,000 in 2003;
US58,750,000 in 2004; US78,500,000 in 2005; US84,500,000 in 2006; US87,250,000 in 2007; and US22,000,000 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
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
33
11. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIONS continued
