Mobile-8 fails to reach agreement with bond holders

17 Dec 2008

Indonesia’s PT Mobile-8 Telecom has reportedly failed to reach an agreement with a number of its bond holders, following a meeting held in Singapore to discuss the restructuring of the telco’s debt. Bisnis Indonesia writes that the holders of the bonds intend to reject Mobile-8’s plan to reschedule its USD100 million of debt. It is understood a further meeting has been called to discuss, amongst other things, the proposed debt restructuring, the extension of the term of payment, reducing the value of debt payment obligations, delaying the payment coupon and conversion to ordinary shares of some of the bonds. If no agreement is reached, Mobile-8 faces the possibility of defaulting on its debt.

Indonesia, Mobile-8 Telecom