JAKARTA, Oct 28 (Reuters) - Indonesia's auto giant PT Astra International confirmed on Monday it has reached a basic agreement with a group of creditors as part of efforts to restructure the company's hefty debts.
"The company plans to hold a creditors' meeting in the third or fourth week of November to get an approval on the proposed term sheet which has been agreed with Astra's credit committee," the company said in a statement to the bourse.
Some analysts estimate Astra's consolidated debts at $1.6 billion but they believe the restructuring will only cover debts of around $850 million.
Last week, a source close to the deal told Reuters Astra had struck a basic agreement with creditors who represented about 40 percent of the debts to be restructured. The deal would require support from two-thirds of creditors to be effective.
So far Astra has said little on the progress of its debt workout although the market has often speculated over the second restructuring effort as Astra lacks the cash to pay loans maturing this year and next.
In its statement Astra said the main topics of discussion at the creditors' meeting would be a rescheduling of debts until 2009 and adjustment of interest margin. It did not give further details.
The uncertainty over Astra's debt restructuring efforts helped cut share value by more than half in the past four months. Astra jumped 5.26 percent to close at 2,000 rupiah (0.22) on Monday, in line with the broader market's 2.27 percent rise.
Singapore's Cycle and Carriage Ltd owns 32 percent of Astra. ($1=9,223 rupiah)