Mandiri Sekuritas Sumalindo: EGM results and debt restructuring plan (SULI, Rp108, Not rated)

Sumalindo is a plywood manufacturer with Rp266bn market cap.
􀂄 EGM results: SULI’s EGM yesterday decided that the company agreed to its president commissioner resignation (Ambran Sunarko) and replaced him with Wijiasih Cahyasasi. The company also decided to retain the President Director (Amir Sunarko) and Director (David), even though both of them become the suspect in illegal logging
accusation by Kutai police office.
􀂄 Debt restructuring plan: the company is also asking its creditors to restructure the outstanding debts. As of June 30’ 2010, the company has debt matured in 2010 amounting to Rp475bn while the cash position was only Rp29bn and equity position of only Rp268bn. During 1H10, the company’s operating cash flow is minus Rp55bn as it posted operating loss of Rp53bn. The company posted net gearing level of 4.4x as of June 30’ 2010.
􀂄 Currently, there is no analyst covers SULI stock. The stock price has increased by 9.1% this month.