Bakrie Telecom given 30 days to restructure debt

17 Nov 2014

A court in Jakarta has given troubled Indonesian CDMA operator PT Bakrie Telecom, the telecoms arm of the heavily indebted conglomerate Bakrie group, just 30 days to negotiate a restructuring plan with its creditors. The commercial court decision, which was made last week, is in response to a petition from Bakrie Telecom creditor, PT Netwave Multi Media, which last month requested a court-supervised debt restructuring process to redress Bakrie Telecom’s outstanding debt of IDR4.7 billion (USD385,403). The deadline for Bakrie to comply with the order is 9 December, but industry watchers note that the telco is also fighting a separate case in New York – filed in September – in which three bondholders sued Bakrie Telecom for non-payment of interest on a bond of USD380 million. Whilst it is unclear how the Jakarta court decision will affect the US lawsuit, Bakrie has already indicated it will likely continue to default on payments.

Indonesia, Bakrie Telecom (BTel)