Indonesian CDMA operator Bakrie Telecom (BTel) posted a net loss of IDR8.64 trillion (USD659.2 million) in FY2015, a near-four-fold increase on the losses of IDR2.86 trillion suffered in FY2014, IndoTelko reports citing a Disclosure of Information to the Indonesia Stock Exchange (BEI). Further, the ailing company’s filing revealed that it posted full year revenue of just IDR637.8 billion, down around 50% from the IDR1.17 trillion booked in 2014, while operating losses spiralled to IDR3.83 trillion from IDR944.9 billion.
TeleGeography’s CommsUpdate notes that BTel is inching towards the successful completion of its ongoing debt restructuring programme, having secured shareholder approval this month for a rights issue designed to roughly halve its IDR14.0 trillion of debt. Having secured the go-ahead from the Indonesian Financial Services Authority (OJK), BTel will now forge ahead with the debt restructuring plan that will allow China-based Huawei to be a new shareholder of the company; the plan was approved by BTel shareholders last month. Anindya Novyan Bakrie, the president of the ailing company, says that in 2016 BTel will focus its effort on stabilising the business before implementing a new business plan. As part of this, it is converting a mandatory convertible bond worth IDR7.6 trillion into shares. Under the restructuring, investors are being given up to ten years to convert their bonds into BTel shares. If all the bonds are converted, the bondholders will own 55.4% of shares in the Bakrie Group’s telecoms subsidiary. ‘This includes China-based Huawei Group, which will hold around 9% of Bakrie Telecom’s shares,’ said the company’s vice president Taufan E. Rotorasiko.