News

A new £4.3bn ($6.7bn) restructuring deal for Asia Pulp & Paper’s (APP) four subsidiaries is set to be put in place following consultations between the Indonesian Bank Restructuring Agency (IBRA) and other APP creditors.

Representatives of 11 government export credit agencies have agreed in principle to two key proposals following the breakdown of negotiations last month.

Two company directors will be appointed by creditors, while a company consisting of creditors and industry experts will be created to oversee proceedings.

The debt workout process is being led by the IBRA, which is APP’s largest creditor and is owed £645m.