Indonesian mobile operator Axis has hired Moelis & Co to advise it on discussions with lenders for the restructuring of its US$1.2bn loan, a source with knowledge of the matter has confirmed.
Earlier this week, it was reported that several banks,…
Indonesian mobile operator Axis has hired Moelis & Co to advise it on discussions with lenders for the restructuring of its US$1.2bn loan, a source with knowledge of the matter has confirmed.
Earlier this week, it was reported that several banks, including Deutsche Bank, HSBC and China Development Bank, were hesitant about restructuring the US$1.2bn loan backed by Axis’s parent company Saudi Telecom (STC), as they could face losses of up to US$600m.
Axis secured the shariah-compliant loan in 2011 but has since seen its performance decline. The Indonesian operator is now reportedly in breach of some of the loans’ terms.
STC has therefore asked lenders to restructure the US$1.2bn facility in order to reflect its true value of US$600m-US$800m. But creditor banks are considering other options to recover their money, reports suggested.
The situation could disrupt STC’s plan to offload Axis, as the Saudi operator needs the consent of the lenders.
Over the last few weeks STC, which has an 80.1% direct stake in Axis, has been in talks to sell its Indonesian unit to rival local carrier XL Axiata. The deal recently received approval in principle from the communication ministry.
STC, Axis and Moelis were not immediately available for comment.
