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T Bakrieland Development, the property flagship of the politically wired Bakrie family, has managed to pay the principal and interest of its mature bonds.

Yet, the authorities have imposed penalties for the delay.

Bakrieland, whose shares are traded on the Indonesia Stock Exchange (IDX) under the code ELTY, said it had transferred Rp 280 billion (US$28.84 million) of principal bonds and Rp 8.99 billion in interest, to the Central Securities Depository (KSEI) account on Monday — the due date.

KSEI said after the payment it would disburse the principal, interest and fine payment to bond holders on Wednesday, March 13.

It said the interest fine for Bakrieland’s failure to pay its obligations on time was 2 percent higher than the bonds’ interest rate of 14.85 percent.

The bourse was closed on Tuesday because of the Hindu Day of Silence, a national holiday.

Under existing regulation, companies have to prepare funds to pay bond’s principal and interest one working day prior to the due date, at the latest.

In Bakrieland’s case, the company should have transferred the funds last Friday.

Last Friday, however, the company asked the KSEI and the IDX for extension and promised to pay the mature bonds on March 14, or three days after its due date on March 11.

Bakrieland said the failure to meet the obligations on time was because it has not completed its refinancing program as it remained overleveraged over unfinished toll road divestment.

The bourse suspended the stock trading of ELTY on Monday.

Bakrieland said that late last year it entered an agreement to sell its two assets — a 99.99 percent stake in toll road company PT Bakrie Toll Road and 50 percent stake in resort and conference developer PT Lido Sarana Prima — to the MNC media group boss Hary Tanoesoedibjo.

Bakrieland did not disclose on Monday where the money to pay the bonds came from. The company also declined to reveal whether the toll road divestment has been completed.

Bakrieland’s president director Ambono Januarianto and head of investor relations Nuzirman Nurdin could not be reached for comments.

MNC Group corporate secretary Arya Sinulingga said it had closed the toll road agreement with Bakrieland.

“It was completed in late December last year,” Arya said in a text message on Tuesday without disclosing the transaction value.

Ambono said previously that the enterprise value of the toll road and Lido developer were more than Rp 2 trillion and less than Rp 1 trillion, respectively. He also said that the company would focus on its main business in property development and would divest assets returning low yields.

Bakrieland is reportedly planning to sell part of its land in Rasuna Epicentrum area in Kuningan, South Jakarta and its 50 percent stake in PT Bukit Jonggol Asri.

Bakrieland’s divestment is also in line with other sister firms under the Bakrie group of companies. The group’s coal miner PT Bumi Resources had said it is in negotiations to sell stakes in subsidiary PT Fajar Bumi Sakti and is considering the release of other subsidiaries.

The Bakrie group is in the process of taking back Bumi Resources from London listed Bumi plc. The conglomerate will exchange its 23.8 percent indirect stake in Bumi plc for the latter’s entire 29.2 percent holdings in Bumi Resources in a share swap and cash transaction worth $278 million.

The Bakrie group, whose presence in Bumi plc is represented by PT Bakrie & Brothers and Long Haul Holdings Limited, had to pay $50 million by Feb. 15 in an escrow account managed by JP Morgan as part of commitment for its London exit. The Bakrie group has repeatedly said it would use internal cash to finance its Bumi Resources’ takeover from Bumi plc.