JAKARTA – PT Bakrie Renewable Chemicals (BRC), a subsidiary of PT Bakrie Sumatera Plantation Tbk (UNSP), restructures the debts of three of its subsidiaries worth USD 59 million in total in PT Bank Mandiri (Persero) Tbk (BMRI). It decided to undergo this transaction as the subsidiary only initiated its operational activities.
Fitri Barnas, Corporate Secretary of Bakrie Plantation, said that the debts were equivalent to 11% of its total assets as of September 2021 of IDR 8 trillion. “The company has negative equity. Therefore, the said transaction is considered a material transaction according to the Financial Services Authority regulation No. 17/2020,” she explained in the information disclosure quoted Monday (14/2).
According to Barnas, the said restructuring process is a part of the company’s strategy to improve its performance. It will enhance the performance of the business group in general and thus earn financing access from the third party for investment purposes. The transaction will cut down the principal and interest expenses owed for the operation of PT Domas Agrointi Prima (DAP).
For the record, UNSP claims 55.174% of BRC’s shares. The restructured debts belong to PT Domas Sawitinti Perdana (DSIP), PT Domas Agrointi Perkasa (DAIP), and PT Flora Sawita Chemindo (FSC), which have been renewed (novation) under PT Domas Agrointi Prima (DAP). (LK/ZH)