Creditors approve BFC debt deal

Creditors approve BFC debt deal

JAKARTA: Publicly listed financial services company Bakrie
Finance Corporation (BFC) gained the approval on Wednesday of
most of its creditors for the restructuring of its debts worth Rp
1.46 trillion (about US$158 million).

Company spokesman Lalu Mara Satriawangsa said in a statement
on Wednesday that 97.4 percent of its creditors, representing
total debts of Rp 1.42 trillion, voted to approve the debt
restructuring proposal presented by the company to the Central
Jakarta Commercial Court.

Under the debt restructuring deal, the company is to transfer
all its assets to a special purpose vehicle, Lalu said.

The assets include insurance firms PT Asuransi Ikrar Lloyd and
PT Asuransi Jiwa Bakrie, securities firm PT Bintang Sekuritas
Indonesia, and financial services company PT Swadinamika Bakrie
Finance.

Lalu said by gaining approval for the debt restructuring
proposal, BFC had now completed the restructuring of debt
totaling Rp 2.2 trillion. --JP