PRESS RELEASE

29 Mar 2019 | Arpeni

ARPENI ANNOUNCES SHAREHOLDER APPROVALS CAPITAL ADDITION

ARPENI ANNOUNCES SHAREHOLDER APPROVALS CAPITAL ADDITION WITHOUT GIVING PRE-EMPTIVE RIGHTS  AS FINAL STEP TO ITS CAPITAL RESTRUCTURING

JAKARTA, INDONESIA, March 29, 2019 – PT Arpeni Pratama Ocean Line Tbk (“Arpeni” or “Company”) hereby announces Shareholders Approvals for Capital Addition, which would culminate the Company’s capital restructuring.

The incumbent shareholders approved the increase of shares from 8,670,479,000 to 21,362,948,526 with the assumption of exercising 9,759,143,822 new shares from debt to equity conversion, along with the issuance of 2,064,674,204 new B Warrants II and from the previously existing of 868,651,500 Warrants I series. This Capital Addition without Giving Pre-emptive Rights was derived through a consensual restructuring with the Company’s Secured and Unsecured creditors at the parent and subsidiary levels.

Based on financial proforma as of 30 September 2018, after the capital addition without giving pre-emptive rights, Company’s total liabilities will decrease by Rp 4,775 billion from Rp 7,054 billion to Rp 2,279 billion. In addition, Company’s capital stucture balance will improve from capital defficiency of Rp 6 trillion to only Rp 805 billion, along with the exercise of Warrants Series I and II.

Today’s proceedings as previously disclosed by Arpeni resulted from extensive discussions with their respective creditors on a plan to return the highest value possible to all creditors by significantly delevering Arpeni by converting a substantial portion of the Company’s indebtedness to equity in Arpeni. It was widely concluded by the Company and its stakeholders that a massively restructured balance sheet will permit Arpeni to significantly strengthen its operating performance and financing capacity and enhance share values and allow the Company to return a recovery to creditors that converted to equity.

A several years-long process led to an Amended Composition Plan that became effective on 7 February 2019. As recently as March 19th, 2019 the Company received an affirmative Confirmation Order to Arpeni BV’s prepackaged Plan of Reorganization pursuant to Chapter 11 of the Bankruptcy Code. This was a final condition subsequent and condition for receiving shareholder approvals. Arpeni appreciated creditors largely uniform support with approval levels often exceeding varying Majority Credit thresholds.

 

About Arpeni

Arpeni is a leading Indonesian logistics and transportation group and a driving force for trade, delivery commodities across Indonesia and the globe since 1975. APOL began its business with general cargo vessels, as a pioneer carrier of timber-based products to international markets, particularly in East Asia. In line with Indonesia's natural resources industry growth, the Company expanded its fleet to provide liquid, gas, goods, and dry bulk cargo transportation throughout Indonesia and international markets. APOL's current fleet of quality and diversified vessels comprises of Panamax bulk carriers, floating cranes, tugboats and barges, and a crude oil tanker. To further complement its shipping business, APOL developed its end-to-end transportation and logistics services, from agency, stevedoring, ship management, to jetty management.


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