Asia/Pacific News
Chemical Shipper Gets Extension for Debt Settlement
Indonesian chemical shipper PT Berlian Laju Tanker (Berlian Laju) [BLTA:IJ] has 75 days to settle its debt if it wants to avoid bankruptcy, Indonesia Today reports.
The company's creditors, including Bank Mandiri, Merrill Lynch, and Bank Central Asia, have agreed to offer the company extra time to negotiate an agreement.
Nicholas Yoong, a consultant for Berlian Laju, said the request for extra time stems from the need of syndicate creditors for time to evaluate a proposed deal, as well as a request of restructuring from creditors tied to the U.S.-based financial firm Gramercy and a deadlock in negotiations with several creditors including Gramercy.
The company, which owed creditors $1.9 billion as of October, has said weak freight rates and rising fuel costs have put pressure on its results, and it is switching its focus to niche liquid chemical and gas transport.
