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Indonesia's Bakrie to clear 680 mln dlrs in debts: executives
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Indonesia's Bakrie to clear 680 mln dlrs in debts: executives
AFP - 33 minutes ago
JAKARTA (AFP) - - The troubled Indonesian business empire Bakrie Brothers has found buyers to settle 680 million dollars' worth of debts, executives said Wednesday.
Australian hedge fund Brentwood Ventures will take over its 105 million dollars of debt to India's ICICI Bank, Ari Saptari Hudaya, one of Bakrie's directors, was quoted as saying by Dow Jones Newswires.
The deal will result in Brentwood owning a 6.7 percent stake in the company's subsidiary coal giant Bumi Resources Bumi, Hudaya added.
"This is good for ICICI as the money loaned out by it to Bakrie is coming back to it with Brentwood taking over the debt," a local analyst said.
"But the stock isn't likely to rise much as investors are still wary of ICICI's exposure to overseas markets."
The Bakrie group is controlled by the billionaire welfare minister Aburizal Bakrie, who is struggling to hold together an empire crumbling amid the global credit crunch.
Bakrie Brothers, which has holdings that span palm oil to coal and construction, still owes 81.5 million dollars to several local lenders.
Under a deal signed in November, private equity firm Northstar Pacific Partners will take over Bakrie's 575-million-dollar debt to Oddickson Finance.
The deal, due to be concluded later Wednesday, would allow Northstar to own around a 20 percent stake in Bumi, a Bakrie official told Dow Jones Newswires.
Aburizal Bakrie, the main financial backer of President Susilo Bambang Yudhoyono's election campaign in 2004, is considered Indonesia's richest man with a family fortune estimated by Forbes Asia magazine at 5.4 billion dollars.
But the global financial crisis and plummeting commodity prices have damaged the family business.
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