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Sinar Mas Debts

More Debt Concern

Tuesday, March 27, 2001

A number of banks and pension funds are worried about Sinar Mas' inability to pay back its loans and bonds. Unless its capital base is strong, the group may collapse.

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The door blasted open and out sped two angered men. A meeting continued in the room they had just left. Questions were occasionally asked that demanded definite answers. More participants walked out. All those in attendance—and those who had departed—were bondholders of PT Lontar Papyrus, a subsidiary of the Sinar Mas Group. And all were dissatisfied with indefinite answers about their bonds.

The informal meeting between bondholders

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