BLTA Confirms Covenant Breach & Default on Debt Payments

Industries Photo

Friday, 27 January 2012 08:00

Written by Ditto Levitt

BLTA, Confirms Covenant Breach & Default on Debt Payments

JAKARTA, Indonesia Today - The troubled shipping company PT Berlian Laju Tanker (BLTA) Tbk confirmed that a covenant breach has been declared under a loan facility granted to one of the company’s subsidiaries. BLTA is a guarantor under this facility. Further, certain of the company’s other subsidiaries have also failed to make payments that are due under certain lease facilities.

Widihardga Tanudjaja, president director of BLTA, blamed global economic slowdown combined with rapid global fleet growth, which have impacted the company's business and financial position.

For the current financial year, the scheduled principal payments that are to be made under bank loans, bonds and finance leases by the company and its subsidiaries are estimated to be in the region of USD 418 million.

"While the assessment is ongoing, the Company has decided to temporarily cease repayments on all of the Company's bank loans and bonds and payments on ship leases and on similar obligations of its other subsidiaries, save for PT Buana Listya Tama Tbk., to enable the Group to review its financial position and arrangements," BLTA said in a press statement this morning.

BLTA has started discussions with the relevant parties with a view to restructuring the relevant bank and lease facilities and for that the company has appointed FTI Consulting. (Indonesia Today)

Berlian Laju Tanker

» CPO Drags Plantation Stocks Further Down

Theindonesiatoday.com - Plantation stocks dragged further down to lower ground in the region Tuesday (Oct 4) due to declining crude palm oil (CPO) prices and negative global sentiment.

Latest News

Berlian Laju Tanker

» CPO Drags Plantation Stocks Further Down

» Indo Mines Acquires Iron Sands Projects in Halmahera

» Seluma Regent Faces 5 Years Imprisonment

» Margin Squeezed, BII Profit Drops 33%

» KPK to Examine Minister Muhaimin in Aborted Bribery Attempt

» ThyssenKrupp to Supply Cement Clinker to Holcim

» Astra Sedaya Secures $340 Million Club Loan

» Gajah Tunggal's B3 Ratings on Review for Downgrade

» Golden Land Acquires PT Tasnida Agro Lestari

» Major Rally Avoided as Workers & Employers Reached Settlement

» General Makmun Murod Passes Away

» Gap of Brent & Nymex Crude Narrowed to Below $10

» Total Indonesie Contributes 45% Citra Tubindo's H1 Revenues

» BCA Profit Grows 25% to Rp7.7 Trillion

» IDX Closes Morning Down 0.99% on Regional Factor

Latest News

Most Read

Most Read

Industries

Politics

Law

People