T Bakrie Telecom Tbk has been moving closer to realizing its debt restructuring program after sealing shareholders' approval for its rights issue plan, as part of the company’s efforts to trim its Rp 14.9 trillion (US$1.1 billion) debt.
Having previously secured approval from the Financial Services Authority (OJK), the company’s debt restructuring plan – that will allow the China-based Huawei to be a new shareholder of the telecommunications provider – was approved by shareholders on Tuesday.
"This year, we are focusing on restructuring the telecom business first, and then focusing on the new business plan," president commissioner Anindya Novyan Bakrie told thejakartapost.com after an Extraordinary General meeting (EGM) in Jakarta.
The approval, he further explained, was to convert a mandatory convertible bond worth Rp 7.6 trillion (US$574.24 million) into shares. Assuming that all bondholders executed their rights, the company will halve its current debt of Rp 14.9 trillion.
In the restructuring plan, investors are given up to ten years to convert their bonds into shares in Bakrie Telecom. If all the bonds are converted, the bondholders will own 55.4 percent of shares in the Bakrie Group’s subsidiary.
"This includes China-based Huawei Group, which will hold around 9 percent of Bakrie Telecom’s shares," said the company’s vice president Taufan E. Rotorasiko. (ags)
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