Bakrie family given time raise money for debts

Bakrie family given time raise money for debts

Indonesia's billionaire Bakrie family have requested an extension until May 31 to repay a 'significant portion' of the $440 million loan owed to a group of 20 international lenders led by Credit Suisse Group (CS), after an April 27 deadline was missed without payment, according to a person familiar with the matter Wednesday.

Lenders asked the Bakrie Group on April 20 to top-up the loan with around $100 million in cash, after shares in the family's London-listed coal company Bumi PLC (VLLRF), which are collateral for the loan, plunged below a threshold and triggered a form of margin call. The loan agreement stipulated that the top-up cash be produced by Friday last week, but the Bakries had not done so, putting it in technical default.

The lenders have until the end of Friday this week to vote on whether to accept the Bakries' request, which would involve repaying a 'significant portion' of the loan, added the person. It was not immediately clear whether the Bakries intend to repay the full $440 million, or at the very least the $100 million cash top-up requested by lenders. The Bakries have also requested lenders not to call for default in the meantime, the person said.

'We are in active discussion with our lenders and hope to have an agreement soon,' said Eddy Soeparno, finance director and chief financial officer of PT Bakrie & Brothers the holding company of the Bakrie Group and the company which has taken out the loan. He declined to elaborate.

People familiar with the deal said it is likely that the Bakrie family will be given the time to raise the money or explore other payment options, such as a partial repayment of the loan, as lenders hope to maintain good relations with the family.

Investors also have little incentive to dump their shares in Bumi, said people familiar with the deal, as they are trading at more than 30% below the net asset value of the assets Bumi holds.

Bumi, which was listed in London last year via a backdoor listing conducted by financier Nat Rothschild, has lost more than 55% of its share price from their peak last year. Shares closed up 1.6% on Friday.
 

We provide Professional technology, excellent product quality and intimate after-sales service when you purchase , , from our company.As a professional mining machinery exporter, we will win your trust with our delivery speed, Enterprises Credit and product quality.