Asia Pulp & Paper Co. said it has delayed its plan to build a $1.3 billion pulp and paper mill in Malaysia ``indefinitely.''
Late last week the company's 60 percent owned Malaysian unit, Borneo Pulp and Paper Sdn, said it was planning to raise about $1 billion to finance the project.
APP shares have fallen as much as 50 percent to a record low since it announced plans for the exchange offer, valuing the company at about a twentieth of its outstanding debt.
The company has to repay more than $2 billion by the end of next year. APP as a group owes more than $10 billion.
If the Malaysian mill project goes ahead, the company said it would be willing to sell its stake down to 20 percent, and it ``would not expect to be responsible for building or financing the project.''
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