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)