(Corrects to remove garble in last paragraph of story published Oct. 16.)
Oct. 16 (Bloomberg) -- PT Bakrie & Brothers Tbk said it’s in final negotiations for a new financing facility, which will allow it to resolve issues relating to a $597 million loan arranged by Credit Suisse Group AG.
The process, which will be concluded by about Oct. 31, involves partially repaying existing lenders and rolling the balance into a new loan, Bakrie & Brothers said in an e-mailed statement today.
The holding company, which has interests in businesses from steel pipes to cell phones, said Oct. 7 it was seeking to refinance a $597 million loan from Credit Suisse Group. Indonesia’s Bakrie Group is a palm-oil-to-property family empire founded in 1942.
Bakrie & Brothers, which signed a one-year loan this year with Credit Suisse and as many as 12 investors, breached two conditions of the financing in the past few weeks, a person with direct knowledge of the matter said Oct. 7, asking not to be identified because the details are private.
The loan’s so-called collateral-cover trigger was activated on Sept. 28 after a decline in the value of Bakrie & Brothers’ stake in Indonesian cola producer Bumi Plc, the person said. The share-price trigger was also tripped at about the same time, he said. Bumi has fallen 30 percent this year in London trading.
“Given the decline in share prices on the London Stock Exchange also affected Bumi Plc shares, which are the collateral for the loan from CS, the company took the necessary steps to fulfill the provisions required in agreement with its creditors, among others, by seeking the new loan facility now being finalized,” Bakrie said in a second statement today.
Bumi said in a statement Oct. 7 the bridge loan was due for repayment “in the near future” and Bakrie & Brothers was in talks to restructure the facility.
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