Jakarta, CNBC Indonesia – State-owned steel producer PT Krakatau Steel Tbk (KRAS) has completed the payment of Tranche B’s debt of Rp 2.7 trillion.
With the settlement of these debt obligations, Krakatau Steel was able to complete the Working Capital Bridging Loan (WCBL) facility of US$ 200 million to three state-owned banks, namely PT Bank Mandiri (Persero) Tbk (BMRI), PT Bank Rakyat Indonesia (Persero) Tbk ( BBRI), and PT Bank Negara Indonesia (Persero) Tbk (BMRI).
“In accordance with the restructuring credit agreement, Krakatau Steel has paid the outstanding credit facility of USD 200 million which matures in December 2021,” said Finance Director of Krakatau Steel Tardi, in a statement on the information disclosure page of the Indonesia Stock Exchange (IDX), Monday. (27/12/2021).
After signing the restructuring agreement in January 2020, Krakatau Steel has paid debts of USD 30.4 million (Rp 437 billion) consisting of Tranche A debt resulting from a debt restructuring agreement of USD 17.4 million (Rp 250 billion) and debt installments to Commerzbank USD 13 million (Rp 187 billion).
So that in 2021 Krakatau Steel has paid a debt of Rp 3.2 trillion. “The source of this debt payment is obtained from the company’s internal cash flow for the results of Krakatau Steel’s performance which is getting better after the restructuring,” added Tardi.
Furthermore, Tardi said that with all the efforts that have been made by the management so far and with the support of the Ministry of SOEs, the performance of KS in the future will be even better.
For information, the issuer codenamed KRAS recorded a profit of Rp 1.06 trillion until November 2021. In the same period, the company posted revenue of Rp 30 trillion, an increase of 66.8% compared to revenue in the same period in 2020.
Krakatau Steel’s Finance Director, Tardi said, Krakatau Steel achieved EBITDA realization of Rp 2.2 trillion in November this year, an increase of 105% compared to EBITDA in the same period in 2020.
“We convey the performance of Krakatau Steel until November 2021 to restore market confidence, creditors, vendors that Krakatau Steel’s performance is getting better. We are also confident that in 2021 we will again record profits, even increasing from the profit for the 2020 financial year,” said Tardi, in an official statement, Wednesday (15/12/2021).
Previously, the Minister of SOEs, Erick Thohir, said that Krakatau Steel has the potential to go bankrupt in December this year if it does not carry out a number of restructuring steps.
“There are three steps (restructuring), the problem is that the third step is stuck,” said Erik in a Working Meeting with Commission VI DPR RI, last Thursday, quoted Saturday (4/12/2021).
Erick said that Krakatau Steel invested in the manufacture of a blast furnace factory worth US$ 850 million in 2008, but the condition was stalled and did not provide any benefits. There was hope that this project would be taken over by China but failed.
Then the second step is being taken regarding work negotiations with one of the steel companies Posco as the largest shareholder of KRAS (issuer code Krakatau Steel), with a share of 70%.
The final step is the possibility of the Investment Management Agency (LPI) or the Indonesia Investment Authority (INA) to invest in Krakatau Steel. Erick explained that if these three steps don’t work, Krakatau Steel in December could default.
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