Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Happy Rayna Stephany, Andin Aditya Rahman
The Commercial Court at the Jakarta Central District Court commenced proceedings last Thursday for a request to postpone the debt payment obligations of PT. Bakrieland Development Tbk. (Bakrieland) following a bankruptcy petition being filed against it by the Bank of New York Mellon.
The America-based bank submitted the application following Bakrieland’s failure to make debt payments under a trust deed between Bakrieland and its subsidiary company, BLD Investments Pte. Ltd. (BLD Investments).
In the trust deed, BLD Investments acted as a bond issuer, the Bank of New York Mellon as trustee for the bondholders, with Bakrieland as the guarantor.
This trust deed, which was executed on 23 March 2010, included provisions on the issuance of equity linked bonds guaranteed by USD 155 million.
This bond was issued for a period of five years and matures on 23 March 2015. The annual interest on the bond is set at 8.625 percent.
The trust deed also grants bond holders a put option for the right to resell the assets at a prior date before the maturity date of the debt.
Problems in carrying out the trust deed surfaced on 13 February this year when Bakrieland submitted a letter to the Bank of New York Mellon stating their inability to make debt repayments as various projects of Bakrieland had failed to be implemented according to plan.
Subsequently, BLD Investments together with Bakrieland submitted indicative terms to the bond holders which essentially requested debt restructuring and a meeting of bondholders to determine further steps.
Considering the conditions at the time, on 25 March 2013, the Bank of New York Mellon informed BLD Investments and Bakrieland that by failing to duly meet their payment obligations and interest payments Bakrieland was on the verge of being in default under the terms of the trust deed and that if within five days Bakrieland could still not make repayments on their obligations, both BLD Investments and Bakrieland would officially be in default of the trust deed.
As of 2 April 2013, BLD Investments and Bakrieland failed to repay their obligations, which amount to USD 154.342 million. The amount repaid by BLD Investments only covered 2.16 percent of that amount or USD 3.342 million.
On 24 June 2013, BLD Investments and Bakrieland submitted another statement letter on their inability to pay the debt’s interest. They released another letter on the same matter with similar contents on 8 July 2013.
Finally on 28 August 2013, the Bank of New York Mellon requested a subpoena for BLD Investments and Bakrieland to settle their payable debt amounting to USD 160.718 with consequent penalties.
Other creditors that are included in the case are PT. Bank Internasional Indonesia Tbk., PT. Bank Tabungan Negara (Persero) Tbk., and PT. Bank Sinarmas Tbk.
The Bank of New York Mellon also requested the panel of judges adjudicating the case to appoint Andrey Sitanggang, Timotius Tumbur Simbolon, and Erniwaty Hutagalung as the bankruptcy administrators for the case.
At the time of writing, Hukumonline is yet to receive any detailed explanation on this matter from Aji Wijaya, Bakrieland’s legal counsel.
However, he asserted that compared to last year Bakrieland’s performance this year has improved and therefore it is difficult to believe that the company is not able to fulfill its debt payment obligations.
(hot/kc)
Happy Rayna Stephany, Andin Aditya Rahman
The Commercial Court at the Jakarta Central District Court commenced proceedings last Thursday for a request to postpone the debt payment obligations of PT. Bakrieland Development Tbk. (Bakrieland) following a bankruptcy petition being filed against it by the Bank of New York Mellon.
The America-based bank submitted the application following Bakrieland’s failure to make debt payments under a trust deed between Bakrieland and its subsidiary company, BLD Investments Pte. Ltd. (BLD Investments).
In the trust deed, BLD Investments acted as a bond issuer, the Bank of New York Mellon as trustee for the bondholders, with Bakrieland as the guarantor.
This trust deed, which was executed on 23 March 2010, included provisions on the issuance of equity linked bonds guaranteed by USD 155 million.
This bond was issued for a period of five years and matures on 23 March 2015. The annual interest on the bond is set at 8.625 percent.
The trust deed also grants bond holders a put option for the right to resell the assets at a prior date before the maturity date of the debt.
Problems in carrying out the trust deed surfaced on 13 February this year when Bakrieland submitted a letter to the Bank of New York Mellon stating their inability to make debt repayments as various projects of Bakrieland had failed to be implemented according to plan.
Subsequently, BLD Investments together with Bakrieland submitted indicative terms to the bond holders which essentially requested debt restructuring and a meeting of bondholders to determine further steps.
Considering the conditions at the time, on 25 March 2013, the Bank of New York Mellon informed BLD Investments and Bakrieland that by failing to duly meet their payment obligations and interest payments Bakrieland was on the verge of being in default under the terms of the trust deed and that if within five days Bakrieland could still not make repayments on their obligations, both BLD Investments and Bakrieland would officially be in default of the trust deed.
As of 2 April 2013, BLD Investments and Bakrieland failed to repay their obligations, which amount to USD 154.342 million. The amount repaid by BLD Investments only covered 2.16 percent of that amount or USD 3.342 million.
On 24 June 2013, BLD Investments and Bakrieland submitted another statement letter on their inability to pay the debt’s interest. They released another letter on the same matter with similar contents on 8 July 2013.
Finally on 28 August 2013, the Bank of New York Mellon requested a subpoena for BLD Investments and Bakrieland to settle their payable debt amounting to USD 160.718 with consequent penalties.
Other creditors that are included in the case are PT. Bank Internasional Indonesia Tbk., PT. Bank Tabungan Negara (Persero) Tbk., and PT. Bank Sinarmas Tbk.
The Bank of New York Mellon also requested the panel of judges adjudicating the case to appoint Andrey Sitanggang, Timotius Tumbur Simbolon, and Erniwaty Hutagalung as the bankruptcy administrators for the case.
At the time of writing, Hukumonline is yet to receive any detailed explanation on this matter from Aji Wijaya, Bakrieland’s legal counsel.
However, he asserted that compared to last year Bakrieland’s performance this year has improved and therefore it is difficult to believe that the company is not able to fulfill its debt payment obligations.
(hot/kc)