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Bakrie Telecom Struggling to Raise Funds to Repay Debt
Published on:
Indonesian mobile network, Bakrie Telecom's (BTEL) has failed to raise enough funds to repay IDR 650 billion (US$69 million) of loans that mature next month.
The company recently had its debt put on negative ratings watch by Fitch over concerns about the struggling company's ability to roll-over its debt. At end-March 2012, BTEL's liquid assets comprised only IDR215bn unrestricted cash and equivalents and the company has yet to secure sufficient committed additional funds.
Earlier this year, BTEL and rival network, Sampoerna Telekomunikasi Indonesia (STI) agreed to merge their CDMA networks, but have seemingly failed to convince investors that the merged company can compete with the larger GSM/3G rivals.
BTEL vice president director Justiro Abi told The Jakarta Post that the company is currently attempting to secure loans from Credit Suisse to repay the maturing debt, he added. "We are targeting to reach a deal this month."
On the web: The Jakarta Post
Tags: [bakrie telecom] [Indonesia]
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