Wicaksana sells land for debts

Distribution company PT Wicaksana Overseas International Tbk sells a parcel of land (62,415 m2) in Bekasi, West Java to PT Wira Logitama Saksama for Rp50 billion. The company will use 50% of the proceeds to finance its debts.

Wicaksana, controlled by Djaja family, will use Rp25 billion of the proceeds to pay its debts to Coastlines Global Ltd, while the remaining will be used for working capital. Wicaksana has outstanding debt of US$7.38 million to Coastlines.

In Dec 2006, Wicaksana entered into debt restructuring agreement for US$64.57 million debts where US$54 million was converted into equity, while US$2.9 million was settled with transfer of Wicaksana's shareholding in PT Wira Logitama Saksama to Assetia Capital Management Ltd, and US$7.5 million was kept as sustainable debt due 2016.

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