Bakrie gets debt workout

JAKARTA (JP): Conglomerate PT Bakrie & Brothers has reached an agreement with 300 foreign creditors to restructure its offshore debt, a news report said.

Business Week reported on Saturday that based on a 7 Jan. agreement, Bakrie would swap debt for 80 percent of a holding company that would own shares in five of its key assets, including a 5.3 percent stake in the Iridium telecommunications group worth about US$100 million.

Banks and also bond holders would also get a 20 percent stake in other Bakrie operations from steel pipe making to finance.

An executive at Bakrie said the 300 creditors represent some 80 percent of the company's foreign debt of $1.15 billion. He said Bakrie would lobby other creditors to accept the agreement. (rid)