JAKARTA: Bakrie Group will soon announce its agreement with PT Renaissance Capital to avoid default of US$1.34 billion debt after negotiation with commodity-based company Glencore failed.
Two sources familiar with the matter, as cited in Bloomberg, said Renaissance Capital, founded by entrepreneur Samin Tan, is rumored to provide the refinancing in exchange with share ownership.
Samin and Surjadinata previously managed the coking coal company PT Borneo Lumbung Energi Tbk through PT Republik Energi & Metal but then Surjadinata had sold his ownership to Republik Energi.
The agreement is part of the group plan, lead by Nirwan D. Bakrie, to refinance debt, arranged by Credit Suisse, obtained this March. The group manages 47% of London-listed company Bumi Plc.
Glencore is no longer negotiating with Bakrie Group, said the sources. None of Bakrie Group, Glencore and Renaissance executives answered Bisnis' confirmation calls.
Group Bakrie previously negotiating with Glencore about the US$500 million loan. Strategically, the loan would be used to settle part of Bakrie Group debt amounted to US$1.3 billion due in March 2012.
In return, Glencore was rumored to ask for extension of marketing rights for PT Kaltim Prima Coal’s coal, a unit of PT Bumi Resources Tbk, for 20 years. The marketing rights will end in 2015 with 5% fee.
Sunday Times wrote beside Glencore, another Indonesian conglomeration group is also studying the option to provide bailout in exchange with Bumi Plc’s majority shares.
Bumi Minerals
Another source gave different perspective on the matter, believing Renaissance Capital is in negotiation with Nirwan Bakrie to acquire PT Bumi Resources Minerals Tbk's share.
“It’s seem like the negotation is almost finish. The value is not spread out yet,” he said.
Bumi, he continued, might use the proceeds to pay parts of its debt to China Investment Cooperation (CIC). “Renaissance possibly lent by Credit Suisse and one international bank”.
Bumi previously planned to sell 75% of Bumi Minerals to Bumi Plc under convertible bond scheme, but then the plan is delayed. (t05/ags)
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