JAKARTA - PT Estetika Tata Tiara Tbk (BEEF) will convert some of its debts owed to Asian Agri International (AAI) Pte Ltd of IDR 350 billion. The debt-to-equity conversion will be carried out through the issuance of 5.14 billion of shares worth IDR 68 billion in total.

In the information disclosure quoted Friday (19/5), Imam Subowo, President Director of BEEF, said that the approval regarding this plan shall be obtained during the Extraordinary General Shareholders Meeting on May 31. “The company will request for the listing of additional shares via a private placement of 5.14 billion units to Indonesia Stock Exchange (IDX),” he confirmed.

This corporate action is arranged following a default issued by Bank QNB for BEEF on December 8, 2021. The default letter refers to the warning letters dated August 24, 2021, September 24, 2021, and October 18, 2021. According to the verdict by Central Jakarta Commercial Court, the company was ordered to convert some of its debts to AAI worth IDR 350 billion.

The private placement plan was also made after the issuance of the Suspension of Debt Payment Obligation, which is intended to restore BEEF’s financial condition. It will then be followed by non-deal roadshow (NDR) with significant shareholders to secure financial supports to pay off its obligations. (LK/ZH)