PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2007 and 2006 Expressed in rupiah, unless otherwise stated
34
12. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIO NS continued
ii negative pledge whereby the Company shall not, among others: a. pledge, sell, transfer, dispose of any of its assets on term s whereby they are or may be leased to
or re -acquired by the Company b. sell, transfer, or otherwise dispose of any of i ts receivables or recourse them
c. items a and b do not apply for transactions in the ordinary course of business. The agreement also sta tes that HC, as a Guarantor, should maintain:
i The Group’s Net DebtEarning Before Interest, Tax, Depreciation and Amortization EBITDA ratio at levels not higher than:
a. 3.25:1 for the period ending June 30, 2006, 2007, 2008, 2009, 2010 b. 3.00:1 for the period ending December 31, 2006, 2007, 2008, 2009, 2010
ii Consolidated Net Worth of the Guarantor Group at a level not l ower than EUR3,500,000,000 at any time.
On April 11, 2006, the Company as the Borrower signed a bilateral loan facility agreement with Marubeni Corporati on as Lender to partially refinance the Marubeni Contractor Facility in the amount
of JP¥ 1,178 million that was set to mature on December 29, 2012 and the JBIC P11 Guarantee Facility in the amount of JP¥2.4 billion, which was guaranteed by Marubeni Corporation. The loan from
Marubeni Contactor Facility was fully paid in October 2006 and the JBIC P11 Guarantee Facility was fully paid in December 2006.
The bilateral loan bears annual interest at Long-Term Prime Rate LTPR plus 0.9. The guarantee fees paid to Marubeni Corporation arising from the previous loans were reduced from 1 to 0.7 per
annum in 2006 .
The Facility and the Ma rubeni Contractor Facility mentioned above are secured by the Corporate Guarantee of HC. The Company pays a guarantee fee of 0.2 per annum of the available loan facility
balance as compensation to HC. On April 20, 2006, the Company terminated the HZMFA loan and repaid the outstanding principal
balance of Rp1,801,595,022,984 consisting of US98,723,524,
JP¥11,078,193,765 and
Rp52,895,195,219 by using the drawdown of the Facility as stated above and the Company’s cash through the escrow accounts. In May 2006, following the full repayment of the outstanding balance of
the HZMFA loan and the termination of the HZMFA, the Company closed all the escrow accounts and the remaining cash balances in those accounts totaling Rp339,511,1 21 were transferred to “Cash and
Cash Equivalents”.
13 . OBLIGATIONS UNDER CAPITAL LEASE
The future minimum lease payments required under the lease agreements as of June 30, 2007 and 2006 are as follows:
Years 2007
200 6
___________________________________
2006 -
992,891,853 2007
1,867,455,534 125,792,516
2008 3,412,955,776
- 2009
3,208,944,509 -
Total 8,489,355,819
1,118,684,369
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2007 and 2006 Expressed in rupiah, unless otherwise stated
35
13. OBLIGATIONS UNDER CAPITAL LEASE continued 2007
