Plaza Indonesia & Danamon derivative settlement

PT Plaza Indonesia Realty (PLIN) Tbk and Bank Danamon agreed to terminate a master agreement for foreign exchange transaction where PLIN has to pay termination fee of Rp83.5 billion. 

PLIN told Capital Market Supervisory Agency (Bapepam) on Tuesday that the agreement was signed July 2nd, 2009. According to the settlement agreement, Plaza Indonesia will pay Rp83.5 billion to Danamon in six years starting December 31, 2009 until December 30, 2014.

Plaza Indonesia reported net loss of Rp233 billion last year against net profit of Rp101 billion in 2007, mainly because of huge losses from derivative transactions of Rp239 billion and forex translation loss of Rp149 billion.

The company also booked net loss of Rp55 billion in Q1 2009 against net profit of Rp58 billion in Q1 2008, mainly due to forex translation loss of Rp69 billion.

PLIN is the owner of Grand Hyatt Hotel Jakarta, Plaza Indonesia shopping mall, and EX Plaza. The company secured US$150 million loan from Sumitomo Bank in 2006. 

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