| BUSINESSWEEK ONLINE : JANUARY 25, 1999 ISSUE | ||||||||
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| INTERNATIONAL OUTLOOK
Indonesia Gets a Workout A Jan. 7 agreement between Bakrie & Brothers and 300 foreign creditors could prove to be a landmark deal. The politically wired Indonesian conglomerate failed for over a year to agree to terms on $1.15 billion of foreign debt. This time, an International Monetary Fund-appointed negotiator did the talking. And within three hours, Bakrie had a deal which is likely to become the model for workouts for a dozen other Suharto-era conglomerates. Bakrie will swap debts for 80% of a holding company that will own five of its key assets, including a 5.3% stake in the Iridium telecoms group worth about $100 million. Banks and bond holders will also get a 20% stake in other Bakrie operations from steel-pipe making to finance. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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