Bakrie Telecom says to pay debt on time

Jakarta — Indonesia’s mobile operator Bakrie Telecom, which had paid only a part of about 650 billion rupiah ($68.17 million) due to its bondholders, said it would pay the rest on time on Tuesday.

The company said its planned fund transfer to Indonesian custodian agency KSEI a day before the due date was delayed because of a holiday in New York on Monday.

“From a total of 650 billion rupiah worth of bonds due today, we have paid 250 billion rupiah to KSEI account. The remaining will be paid directly from our creditors’ account to bondholders,” company’s CFO Jastiro Abi said in a statement on Tuesday.

The CDMA operator’s stock and rupiah denominated bond trading was suspended this morning by Indonesian Stock Exchange to avoid market speculation on debt default.

“We regret the speculations made by some parties. That is why we fully agree that suspension of stock trading is necessary to prevent this kind of speculation,” President Anindya Bakrie said in the statement.

Bakrie Telecom stock closed at 137 rupiah on Monday. The broader Jakarta Composite Index was down 0.07 percent at 0245 p.m.[]

Reuters

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