PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
33
11. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIONS continued
The HZMFA, which has been amended from time to time, 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 Rp297,035,062,641 consisting of Rp2,755,928, US23,339,511 and JP¥810,398,698 as of December 31, 2005, and Rp232,687,217,363 consisting of Rp3,678,516 and
US21,299,337 and JP¥385,000,001 as of December 31, 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 excess cash available in the above-mentioned escrow accounts after the payments or applications required under the HZMFA.
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 capital stock of Indomix and DAP.
On March 8, 2005, HeidelbergCement Finance B.V., a related party, purchased a portion of the restructured debt under the HZMFA. In connection with this transaction, the following amendments were
made to the HZMFA agreements:
· Amendment of the HZMFA to allow the Company to engage in currency hedges for tenures of up to
4 four years, and enter into swap transactions under International Swap and Derivative Association documentation in relation to the proposed refinancing transaction.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
34
11. LONG-TERM LOANS FROM BANKS AND FINANCIAL INSTITUTIONS continued
