akrie family-owned holding company PT Bakrie & Brothers is working to convert a Rp 10.49 trillion (US$744.79 million) debt into equity.
On Tuesday, president director Gafur Sulistyo Umar said the debt was owed to three creditors -- Japanese Mitsubishi RtM Japan Ltd (Rp 2.9 trillion), Swiss-based Glencore International AG (Rp 5.78 trillion) and Singapore’s Eurofa Capital Investment (Rp 1.68 trillion).
Meanwhile, the remaining Rp 120 billion was owed to minority creditors, Gafur added.
"This is our third phase of debt restructuration. We restructured Rp 987 billion in 2015 and Rp 1.04 trillion in 2017. The debt installment has burdened Bakrie & Brothers for years," he said at a public expose event in Jakarta.
Bakrie & Brothers chief financial officer Achmad Amri Aswono Putro said Mitsubishi had agreed to convert its debt into shares.
"With Eurofa, we have reached the final stage of negotiations. Our target is to complete the process in August, while with Glencore we hope to finish it by December," Amri added.
Gafur said Bakrie & Brothers’ restructuration actually started in 2009, but the failure of a joint investment with Nat Rothschild had burdened the company with more debt.
"The failed investment is burdening our company,” he said, adding that the businesses actually managed to produce revenue. As a holding company, Bakrie & Brothers invests in 10 of its other companies, mainly doing business in the infrastructure and manufacturing industry. (bbn)
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