Published October 01, 2012
JAKARTA – PT Bakrie & Brothers
The company did not say how it would repay the debt, which uses the Bakrie Group's 23.8 percent stake in London-listed coal miner Bumi Plc
The Bakrie Group has in the past sought new loans to refinance debt, with family banker Credit Suisse having been a lifeline for a group that defaulted on foreign debts during the 1997-98 Asian financial crisis.
In June, the Bakrie Group, whose scion Aburizal Bakrie has his sights on getting elected as Indonesia's president in 2014, asked creditors for more time to resolve a mid-April covenant breach on the $437 million loan.
The group's debt situation led to heavy stock selling earlier this year of Bumi Plc and Jakarta-listed miner Bumi Resources
The stocks have again come under pressure in the past week after Bumi Plc launched a probe into potential irregularities in more than $500 million of funds at its Indonesian subsidiaries, including its 29-percent owned Bumi Resources.
This investigation will weaken Bumi Resources' position in capital markets in the next year, Standard & Poor's Ratings Services has said.
(Reporting by Janeman Latul and Andjarsari Paramaditha; Editing by Neil Chatterjee and Mark Potter)