EMP looks for $600 million loan

JSX-listed oil and gas company PT Energi Mega Persada Tbk. (EMP) is trying to get a US$600 million loan to refinance debts, Bisnis Indonesia reported Friday.

During the last few weeks, EMP?s management has been getting help from Deutsche Bank in finding this loan.

?The process has been going on, but I don?t know this money will be what for,? Nirwan D. Bakrie, one of the members of the Bakrie family that controls EMP said on Thursday.

Nirwan explained that it requires the approval of creditors to close the purchase and sale of Lapindo shares (100 percent) to British Virginia Island-based Freehold Group Ltd. Until now, EMP is still talking to creditors to get their approval.

When asked about the obligation that the company must pay its debts, Nirwan said he didn?t know much about the details.

?Without payment of debts, it will be difficult for creditors to approve the sale of Lapindo to Freehold Group,? a banker who knows about this transaction said. (*)