DEBT RESTRUCTURING OF PT CIPUTRA DEVELOPMENT TBK

PT Ciputra Development Tbk was one of the leading property companies in Indonesia. Their property projects were built in several major cities and had a well-known reputation. Two of its subsidiaries were also listed on the Stock Exchange Indonesia, PT Ciputra Surya Tbk and PT Ciputra Property Tbk.

PT Ciputra Development Tbk had total assets of Rp. 9 trillion at the end of September 2010 increased from Rp. 5.3 trillion at the end of 2005. Equity also increased from a negative Rp. 96 billion at the end of 2005 to Rp. 4.78 trillion in late September 2010. On the other hand, the company held cash and cash equivalents Rp. 2.133 trillion, bank loans Rp. 210 billion to various banks, and customer advances was Rp. 1.341 trillion in the end September 2010. The customer advances was Rp. 1.341 trillion as of end September 2010. That is, companies did a very significant progress in the last six years.

However, this was not always the case. On the severe financial crisis on 1997, the company suffered very much from huger losses, mostly because of the foreign exchange debt. The foreign currency debt reached nearly U.S. $ 200 million. With the exchange rate reached Rp 16.000 per dollar, it made the company shuffled. Payable in foreign currencies were very large and negative equity made the company should take action to survive.