Struggling Indonesian wireless operator PT Mobile-8 Telecom plans to issue new shares before the end of October 2009, as part of an IDR300 billion (USD29.79 million) debt-for-equity swap, Bisnis Indonesia quotes Mobile-8 director Merza Fachys as saying. The company is currently talking directly with its non-banking creditors and bond holders to transfer its debt into shares, he added. It is understood that on 30 September Mobile-8 will seek approval from shareholders for the move at the firm’s AGM. Issuance of new shares is planned to be implemented at the end of October. ‘The value of the swap will be determined based on the average share price over the last 25 days after the AGM is held,’ said Merza. The move is being taken to help Mobile-8 meet its obligation to achieve positive EBITDA in the first quarter of 2010. On 29 June this year the operator held a general meeting for bondholders in which it agreed a five-step restructuring of rupiah-denominated bonds worth IDR675 billion.
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