Indonesia’s Bakrie Telecom Posts Higher Debt, in Talks With Bondholders

By Reuters on 01:20 pm Dec 20, 2013

Indonesian telecommunication operator Bakrie Telecom said on Friday its total liability rose to 9.36 trillion rupiah ($766.7 million) at the end of September, from 7.4 trillion rupiah at the end of 2012.

The company, controlled by the politically connected Bakrie Group, is also in talks with bondholders on the terms of debt worth $380 million, chief executive Jastiro Abi told reporters. He did not give details on the terms.

“To resolve debt issues there are many options that we are considering, such as share swaps, rights issues, extending the majority of our debt. But we don’t know what we will do yet and we cannot confirm how much this will reduce debt,” Jastiro said.

In May, some bondholders raised doubts about the loss-making company’s ability to pay the coupon on its $380 million bonds due 2015.

Reuters