Berlian Laju Tanker defaulted on debt payments

By Roffie Kurniawan

PT Berlian Laju Tanker Tbk, Indonesia?s largest oil and gas shipping group listed on both Indonesia and Singapore stock exchanges, announced that it has defaulted on its debt instruments payment following standstill announcement on January 26, 2012.

The falling freight rates had forced the company to stop servicing debts and allowed it to review its financial position and arrangements.

?We are still working with our financial advisor and will provide an update with respect to the company?s restructuring of its indebtedness in due course,? it said.

Widihardja Tanudjaja, President Director of the company, said late last month that freight rates have fallen sharply in recent months, caused in part by a surplus of vessels and global economic slowdown.

?The global economic slowdown combined with the rapid global fleet growth of the past few years resulted in lower freight rates, which combined with higher bunker fuel costs as well as other operating costs have significantly impacted the company?s business and financial position.?

Followings are the company and its subsidiaries' debt instruments that were defaulted:

1. Borrower: BLT Finance B.V.
Debt Instrument: US$125,000,000 12% Guaranteed Convertible Bonds due 2015 (ISIN Code: XS0300718599) .
Due amount: US$36,632,940 (Redemption Proceeds US$ 33,699,000, Interest of US$ 2,933,940) .
Due date: Feb 9, 2012

2. Borrower: BLT International Corporation.
Debt Instrument: US$125,000,000 12% Guaranteed Convertible Bonds due 2015 (ISIN Code: XS0485132046) .
Due amount: Interest of US$ 7,500,000.
Due date: Feb 9, 2012

3. Borrower: Berlian Laju Tanker.
Debt Instrument: Berlian Laju Tanker IV Year 2009 fixed-rate bond, (Seri B) .
Due amount: Interest of Rp 5,812,500,000.
Due date: Feb 27 2012

4. Borrower: Berlian Laju Tanker.
Debt Instrument: Berlian Laju Tanker IV Bond, 2009; with fixed rate (Seri C) .
Due amount: Interest of Rp 7,718,750,000.
Due date: Feb 27, 2012

5. Borrower: Berlian Laju Tanker.
Debt Instrument: Syariah bond Sukuk Ijarah Berlian Laju Tanker II, 2009 (Seri A) .
Due amount: Interest of Rp 1,743,750,000.
Due date: Feb 27, 2012

6. Borrower: Berlian Laju Tanker.
Debt Instrument: Syariah bond Sukuk Ijarah Berlian Laju Tanker II 2009 ‐ Seri B.
Due amount: Interest of Rp 2,234,375,000.
Due date: Feb 27 2012

Editing by David Mustakim