DL on the way back

Indonesia's state-owned shipping company Djakarta Lloyd (DL) is seeking new business after settling debts.

President director Arham Torik said the company wanted to shift its focus towards logistics through deals with other state companies like Pertamina.

“I am eyeing other state-owned companies as new customers and I hope that the state companies can synergise with each other,” he told the Jakarta Post.

It has no plans to add new vessels and will aim to improve its ship management instead.

DL prefers to charter-in ships as it feels the value of new vessels would drop, hurting the company.

The owner came to the brink of bankruptcy with big debts in recent years.

But creditors accepted a proposal to repay debt over 18 years with a five-year interest-free period.

It has also won a 32.5% haircut worth IDR 420bn ($34.95m).

And creditors have agreed to swap debt for equity, giving them 70% of the company, compared to the government's 30%. But they have no voting rights.

DL has a contract with PT PLN to transport about 1m tons of coal per year.

The owner controls six containerships and one bulk carrier.

Many of its dry cargoships were previously seized by creditors and auctioned.

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