Northstar to buy out Bakrie's debts
Mustaqim Adamrah and Rendi Akhmad Witular, The Jakarta Post, Jakarta | Sat, 11/29/2008 7:16 AM
PT Bakrie & Brothers announced Friday night that it had reached
an agreement with Northstar Pacific Partners Ltd. to form a joint
venture company that would take over Bakrie's collateralized
assets currently in the custody of Oddickson Finance.
Under the deal, Northstar -- a local unit of U.S.-based Texas
Pacific Group (TPG) -- will buy out the debt that Bakrie owes to
Oddickson, which currently stands at US$575 million, Bakrie
president director Nalinkant A. Rathod said.
No information was disclosed on the share ownership of the two
firms in the joint venture company.
"We have completed a strategic partnership with Northstar. The
most important thing about the partnership is the buyout of
Odickson Finance's debt," Nalinkant said.
Bakrie's debt to Odickson formerly stood at $1.08 billion, which is a combined value of stakes in the world's largest thermal coal
exporter Bumi Resources, oil and gas producer Energi Mega Persada
and property developer Bakrieland.
However, Nalinkant said that the value of the debt had gone down
to $575 million partly due to "currency gains" and repurchasing
agreement (repo) settlements.
He further said that after the buyout plan Bakrie would have a
remaining debt of about $200 million to other firms that would be
resolved by the end of the year. (and)
