Bakrie seeks help to solve debts

Bakrie seeks help to solve debts

JAKARTA (JP): Publicly listed holding company PT Bakrie &
Brothers said on Friday it would go to the Jakarta Commercial
Court for help completing its unfinished US$1.05 billion debt
restructuring negotiations.

"We will bring our debt restructuring negotiations to the
(Jakarta) Commercial Court and abide by whatever results are made
there," said Irwan Sarkawi, the company's president director,
after the extraordinary shareholders meeting.

Bakrie started debt restructuring negotiations with its
creditors (mostly foreign institutions) in 1998, but has never
reached 100 percent creditors' approval in order put the debt
restructuring into effect.

The Jakarta Commercial Court, under the 1998 Bankruptcy Law,
can regulate that debt restructuring of a company can take place
if 50 percent plus one of the total number of the creditors
approve the debt restructuring programs proposed by the debtor.

The above approval must represent at least two-thirds of the
value of the debtor's outstanding debts, according to a lawyer
close to Bakrie & Brothers.

But failure to get the majority vote, as stipulated under the
Bankruptcy Law, would cause Bakrie Brothers to be automatically
declared bankrupt.

The shareholders meeting also decided to reduce the Bakrie &
Brothers six-member Board of Commissioners to only three members.

Indra Usmansyah Bakrie maintains his position as the company's
president commissioner, with Hamizar Hamid and Amrin Yamin still
serving as commissioners. But, Nirwan D. Bakrie, Roosmania
Koesmuljono and Cesar C. Zalamea no longer hold their positions
as commissioners since Friday.(udi)