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Family member says Bakrie debts resolved
After resolving their protracted debt fiasco, the Bakries will turn their attention to mitigating the impact of the global economic slowdown on their companies’ operations, a top member of the politically influential family revealed Monday
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After resolving their protracted debt fiasco, the Bakries will turn their attention to mitigating the impact of the global economic slowdown on their companies’ operations, a top member of the politically influential family revealed Monday.
Anindya N. Bakrie, the eldest son of Coordinating Minister for the People’s Welfare Aburizal Bakrie — the head of the family — told The Jakarta Post the next hurdle the Bakrie Group of companies faced would be to boost profitability.
“I think (the debt) has been resolved. There is some time until the end of the year to make the calculation. For sure, both parties (PT Bakrie & Brothers and Northstar Pacific Partners Ltd.) have made an agreement.
“My feeling is the next problem will be in our operations (due to the economic slowdown). But because we have restructured (the debts), we will be healthier than most other companies that have not undertaken any restructuring,” said Anindya, who heads the family’s telecommunication firm PT Bakrie Telecom and TV stations Anteve and TVOne.
Anindya, however, insisted his comments on the debt and the Group’s business were not made on behalf of the family nor the Group, but rather as a witness well-versed in the affair.
He said his uncle Nirwan D. Bakrie, Aburizal’s youngest brother, was the only family member authorized to speak about the debt situation because of his role running the daily operations of the Group after Aburizal was appointed to the Cabinet.
Bakrie & Brothers, the family’s holding company, announced Friday it had settled most of its US$1.2 billion debt, in part via a deal with Northstar, a local arm of U.S. buyout firm Texas Pacific Group.
Northstar agreed to take over Bakrie’s $575 million debt from Oddickson Finance SA. The debt initially amounted to $1.08 billion, but was reduced by $200 million on asset sales and $200 million on currency gains.
Under the deal, Northstar and Bakrie will jointly control PT Bumi Resources, the world’s largest thermal coal exporter and the family’s most prized company.
Ancora Capital Management Ltd., founded by JPMorgan alumni Gita Wirjawan, took over $72 million of Bakrie’s debt from JPMorgan.
The remaining $105 million owed to India’s ICICI Bank and other creditors will be settled by the end of 2008.
Anindya said the Northstar deal was inked because its founder Patrick Walujo was a close friend of the family, making it easier for a deal to be reached because of mutual trust.
Patrick, meanwhile, denied earlier reports he was part of President Susilo Bambang Yudhoyono’s 2004 and 2009 presidential campaign teams.
“It is false, my being part of (Yudhoyono’s) 2004 and 2009 campaign team,” he said.
Bumi’s sales jumped by 48 percent in the first nine months of the year to $2.43 billion from $1.64 billion, while net profit tumbled to $490 million from $800 million. (hwa)
