APPs Indonesian mills threat

A group of Asia Pulp & Paper (APP) creditors has filed foreclosure proceedings against one of the Indonesian paper groups units in a bid to recover 290.5m ($485.7m) in debts.

The move could lead to a further delay to the 4.3bn restructuring deal agreed this month by some of APPs major creditor firms (PrintWeek, 6 November).

The case was filed by Bank Mizuho Indonesia, which acts as collateral agent for holders of notes issued by APPs Indah Kiat Finance Corporation unit.

If successful, PT Indah Kiat Pulp & Paper could lose control of two of its Indonesian paper mills.

APPs Indonesian mills, including PT Indah, Pulp & Paper, PT Pabrik Kertas Tjiwi Kimia, and Kiat PT Pindo Deli Pulp & Paper, have made Callington in Hatfield its UK representative.