Court OKs Bakrie's appeal

JAKARTA (JP): The Central Jakarta Commercial Court has approved PT Bakrie & Brothers' appeal to suspend the payment of its US$1.08 billion debt, the company said on Tuesday.

Bakrie spokesman Lalu Mara Satriawangsa said the company expected that with the approval, the current debt restructuring process could be finalized under the court's supervision.

Although negotiations began in late 1997, Bakrie has never obtained 100 percent creditors' approval to put into effect a debt restructuring deal they had agreed on.

Bakrie has said that only 76 percent of Bakrie's more than 150 creditors agreed on a debt to equity and asset swap scheme.

As some creditors rejected the scheme, Bakrie last month appealed for the suspension of its debt payment, which would allow it to negotiate a debt restructuring proposal under the court's supervision.

Under the Bankruptcy Law, Bakrie needs only to secure the vote of two-thirds of its creditors to go ahead with the debt restructuring plan. (bkm)