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