Nearly all creditors of Indonesia’s Bakrie Telecom have reportedly agreed to a restructuring plan that will convert the majority of its debt into equity.
Some 94.5% of creditors have already approved the move, reported Reuters citing a lawyer for…
Nearly all creditors of Indonesia’s Bakrie Telecom have reportedly agreed to a restructuring plan that will convert the majority of its debt into equity.
Some 94.5% of creditors have already approved the move, reported Reuters citing a lawyer for local vendor Netwave Multi Media, which is one of its creditors.
The latest restructuring plan will convert 70% of the telco’s debt into stock at a price of Rp200 (US$0.016) a share, with the remaining 30% to be amortised over five years, Bloomberg reported separately.
It comes after investors holding a quarter of Bakrie Telecom’s US$380m of defaulted bonds filed legal action in New York to oppose an earlier version of the plan, added Bloomberg.
Bakrie Telecom offered creditors a mix of cash and debt-to-equity swaps in November, shortly after a court in Jakarta gave it 30 days to negotiate a restructuring plan following a petition from Netwave.
The telco is a part of the Bakrie Group conglomerate that has investments in industries ranging from oil and gas to property development.
The restructuring comes as the group looks to merge its network with local telco Smartfren.
It was unable to comment before the press deadline.
