HK firm to tender Bakrie debt<\/p>\n
HONG KONG (AFP): Hong Kong-based debt consultancy Asia Debt
\nManagement has offered to take control of some US$1.1 billion in
\ndebt owed by troubled Indonesian conglomerate Bakrie and Brothers
\nto creditors.<\/p>\n
The company said the move, if successful, could set a trend
\nfor dealing with Asia's problem debts.<\/p>\n
Under the scheme Asia Debt Management will make an offer to
\nthe more than 300 creditors to the Indonesian company to buy
\ntheir debt in return for units in a newly established fund.<\/p>\n
Asia Debt Management director Robert Appleby said on Tuesday
\nthat pooling the interests of creditors -- who range from bond
\nholders to syndicated loan participants -- would maximize the
\nchances of recovering the debt.<\/p>\n
He said managing all claims in one pool would streamline
\nadministration and reduce legal fees for individual creditors.
\nAppleby added the scheme would also benefit Bakrie, which is
\ncurrently trying to finalize a restructuring package.<\/p>\n
\"Bakrie has over 300 creditors and trying to communicate has
\nbeen a huge problem,\" he told AFP.<\/p>\n
\"It is so difficult to tell whether the restructuring process
\nwill be approved by creditors.\"<\/p>\n
\"If you get a rehabilitation package through and you cannot
\nget approval from one creditor who has not got the time to vote
\nit stymies the whole process,\" he said.<\/p>\n
Asia Debt Management said the fees it receives will be
\ncontingent on its performance in recovering debts from Bakrie.
\nBut it stressed it did not expect all monies to be recovered.<\/p>\n
Appleby said he expected a growing number of such schemes to
\nhelp Asian companies, many of which are struggling under a
\nmountain of debts following the region's economic crisis.<\/p>\n
\"I think the potential is huge, absolutely massive and we are
\nvery excited,\" he said.<\/p>\n
For the proposal to go-ahead, Asia Debt Management said a pool
\nof at least $30 million worth of debt is needed.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/hk-firm-to-tender-bakrie-debt-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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