Court OKs Bakrie's appeal

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)