Four subsidiaries of Asia Pulp & Paper (APP), which are PT Indah Kiat Pulp & Paper, Lontar Papyrus, Tjiwi Kimia, and Pindo Deli, had signed the agreement with Indonesian Bank Restructuring Agency (IBRA) to create an escrow account in Bank Mandiri.

The information reported by Kompas from IBRA stated that other creditors in the Export Credit Agency had known about the signing.

Total fund in the account must reached US$100M in September 30. Meanwhile, the account is now reached US$60M.

Previously, IBRA had obliged APP to pay the fund to the account by US$20M per month. The fund for escrow account comes from the four debtors that are APP’s operating company in Indonesia.

By the end of this week, IBRA, APP and other creditors will meet to discuss the restructuring conditions. Just like previously stated, the signing of restructuring conditions among the three parties and APP restructuring committee, must be done the latest by September 30, 2002.