Bakrie Telecom has reassured bond- and shareholders that it will repay today (4 September) Rp650bn (US$68.8m) worth of bonds and therefore avoid a default, according to Reuters quoting the company’s CFO Jastiro Abi.
So far, the Indonesian mobile…
Bakrie Telecom has reassured bond- and shareholders that it will repay today (4 September) Rp650bn (US$68.8m) worth of bonds and therefore avoid a default, according to Reuters quoting the company’s CFO Jastiro Abi.
So far, the Indonesian mobile operator has only repaid part of the facilities due today and was reportedly expecting to transfer the rest of the money to Indonesian custodian agency KSEI yesterday.
But the transfer was delayed because of a public holiday in New York, Reuters reported citing a company statement.
This comes as the Indonesian stock exchange decided to suspend the operator’s stock and bond trading today to avoid market speculation on debt default.
In July, rumours about a potential default began circulating after it was revealed that Bakrie had only secured Rp150bn (US$15.8m) from affiliated investment company Bakrie Global Venture to pay bonds maturing in September.
But a month ago, the company signed a US$50m loan with Credit Suisse and, on 31 August, it issued approximately 1.5 billion shares at Rp265 (US$0.03) each to Bakrie Global, allowing it to raise Rp407bn (US$42.7m).
Bakrie was not immediately available for comment.
