Lenders have called in a $1.3 billion loan to Indonesia’s Barkie family that was pledged against the family’s shares in Bumi, a coal mining company listed on the London stock exchange,
the
Financial Times
reported.
Bumi was formed by the Bakries in partnership with financier Nat Rothschild. Its shares have dropped as markets have fallen, the
FT
article said.
The Bakries own 47 per cent of Bumi. Their shareholding, thought to be the family’s most valuable asset, is collateral for the loan. This asset’s value has shrunk as shares have fallen below their listing price of £10 ($15)….
The report noted that the Bakries “have sold off parts of PT Bumi in the past to raise cash.”
The financial health of the Bakries’ business empire, which is the largest in Indonesia and spans a variety of public and private companies, is not clear.
A subsequent
Financial Times
report
said:
The Bakries have a history of acquiring assets, listing them, leveraging them and using the capital to fund more acquisitions. However, debt taken on by Bakrie-family companies has grown to more than $3 billion.
The later report noted that observers “point to the weak performance of the group companies, high debt and a reduced risk appetite by some of Bakrie’s usual financial backers.”
Much will also rise on the performance of the family’s other business interests. The palm oil activities should have been making the family a tidy profit, with commodities at record highs in recent years. But brokerage reports, credit analysis and the performance of shares related to the family paint a dark picture.”
The article said Bakrie Sumatera Plantations was downgraded by Moody’s and Standard and Poor’s rating agencies. It also noted that Bakrie Telecom is operating at a loss and that the Bakries’ oil and gas business, Energi Mega Persada, scrapped plans for a $10 million bond issue.
An observer told the
FT
that the Bakries “have shown willingness to address liquidity issues with asset sales. From that perspective, the investors are fairly optimistic.”
(Source:
Financial Times,
Oct. 5, 2011 and Oct. 11, 2011.)
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