PT Ratu Prabu Energi Tbk (ARTI) is restructuring its debt amounting to Rp743,475 billion.

Based on Ratu Prabu's official publication to the Stock Exchange, Tuesday (6/4), the object of the transaction is the company's debt to PT Ratu Prabu's shareholders worth Rp46.978 billion, and the company's business entity debt of PT Lekom Maras to PT Ratu Prabu of Rp696.497 billion.

These debts came from PT Bank Mega Tbk, which were paid by PT Ratu Prabu directors Derek Prabu Maras and Burhanuddin Bur Maras. Then, the directors transferred the debt to PT Ratu Prabu based on the novation agreement on September 29, 2020.

The Company and PT Lekom Maras have made efforts to resolve their debt problems, which have resulted in negative equity of up to IDR105,416 billion.

Also, the company is trying to maintain the company's ownership percentage in Lekom Maras, where the dilution of this percentage is possible if PT Ratu Prabu converts its debt into shares in Lekom Maras.

According to the plan, the company will pay the debt to PT Ratu Prabu by converting the debt into company shares through additional capital with a rights issue (rights issue). Then, the company took over Lekom Maras's debt and repaid it by converting the debt into shares.

The consideration for debt restructuring is to improve the company's financial statements by increasing capital through a rights issue.