JAKARTA: PT Bakrie Capital Indonesia, a shareholder of PT Bakrie & Brothers, recently asked a state financing firm for an extension of time to refinance Rp 83 billion (US$7.05 million) in repo debts.
R.A Sri Dharmayanti, Bakrie Capital's corporate secretary, said in a statement that the company is still struggling to refinance and rationalize assets, and asked for more time until the end of May to pay its debts.
The remaining amount of the company's repo is Rp 203,484 billion, comprising two repo instruments, which were expected to be settled on Jan 19 and Feb 9.
A repo, or repurchasing agreement, is a borrowing mechanism by which debtors put up securities, which can be shareholder stakes in companies, as the collateral to creditors, but undertake to then purchase them back later on.
PT PNM Investment Management, a subsidiary of state financing and investment firm PT Permo-dalan Nasional Madani (PNM), made repo transactions, originally worth Rp 1.2 trillion ($106 million), with PT Bakrie Capital Indone-sia, a shareholder of PT Bakrie & Brothers.
PNM Investment Management director Tjatur Heri Priyono said recently that around Rp 700 billion worth of repos linked to the Bakrie companies, which matured in January, were still unsettled. - JP