Asia Pulp & Paper Co., which owes close to $10 billion, doesn't have enough cash to repay $600 million loans that come due next year and may have to sell assets or stock to pay its debts, analysts said, according to an article by Bloomberg.
Asia's largest papermaker outside Japan had to borrow $100 million in July at 25 percent interest to avoid defaulting on an earlier loan. The company may be unable to repay that borrowing and another $500 million due October 2001 unless it sells some assets.
``Most investors we speak to today are highly anxious about APP's looming debt repayment,'' said Charles Spencer and Stanley Ling, analysts at Morgan Stanley Dean Witter in a recently published report. ``Cash balances at APP are currently not sufficient to cover these payments.''
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