PT Bakrie & Brothers has agreed with a plan to repay US$437 million of debt arranged by Credit Suisse.
The company, the investment arm of Indonesia’s Bakrie Group, uses the Bakrie Group’s 23.8 per cent stake in London-listed coal miner Bumi Plc as collateral.
The group’s debt situation led to heavy stock selling earlier this year of Bumi Plc and Jakarta-listed miner Bumi Resources. Bumi Plc extended losses today to trade down 1.9 per cent by 1037 GMT, while Bumi Resources closed flat before the latest announcement.
The stocks have again come under pressure in the past week after Bumi Plc launched a probe into potential irregularities in more than US$500 million of funds at its Indonesian subsidiaries, including its 29-percent owned Bumi Resources.
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