Bakrie Telecom proposes debt restructuring

JAKARTA. Indonesia’s PT Bakrie Telecom Tbk has proposed a debt restructuring plan that offers creditors cash instalments and debt-to-equity swaps, after a Jakarta court ordered the company to negotiate a debt restructuring with its creditors by Dec. 9.

“The liability settlement scheme through steady cash payments will be divided among several groups [of creditors] according to the size of the obligations,” the company said in a stock exchange filing on Monday.

One of Bakrie Telecom’s domestic suppliers, PT Netwave Multi Media, last month requested a court-supervised debt restructuring process in Jakarta. Bakrie Telecom owes Netwave Rp 4.7 billion ($387,000).

A lawyer for Netwave was not immediately available for comment on the proposal, which is subject to creditor approval.

The court required that Bakrie Telekom, whose shares have been suspended since Oct. 29, negotiate a debt restructuring with all of its creditors, a Netwave lawyer told Reuters.

Separately, three bondholders sued Bakrie Telecom in a New York court in September, saying that the company and its subsidiaries had missed two interest payments.