BLT Expects to Receive $10 Million Cash Injection

BLT says they are expecting the investment to be made by two Indonesian businessmen.

Indonesian chemical tanker company PT Berlian Laju Tanker (BLT) says they are expecting a $10 million investment in the company to be made by two Indonesian businessmen, Benny Lucman and Gideon Shem Chandr, who control PT Elang Megah Inti, IHS Maritime reports.

The investment is said to be coming by way of a "mandatory convertible security," which will comprise of no more than 2,456,869,565 shares, fixed at IDR57.50 ($0.00422) each, meaning Elang Megah Inti will glean a 9.5 percent stake in BLT from the deal.

BLT, which is listed in both Singapore and Jakarta, is reported to have had its shares suspended from trading since it sought court protection in 2012, but hopes the investment news will mean that its stocks will be trading again by the end of the year.

"After the proposed restructuring, BLT will be well-positioned to take advantage of its expertise in Asian shipping and, in particular, the Indonesian cabotage market," stated BLT.

"The proposed security issuance provides PT Elang Megah Inti with the opportunity to acquire a strategic stake in an appropriately capitalised and funded company that is well positioned to grow and deliver an investment return."

The deal is reported to hinge on the Surya family, which controls BLT, retaining at least a 15 percent stake in the company.

The $10 million cash injection is said to be intended for use as general working capital, with the company's restructuring placing company focus on domestic cabotage trade and moving the majority of its fleet into the hands of private equity firms.

BLT is understood to be transferring the ownership of a number of its vessels to a new U.S. company operating under the Chembulk name.

Last month two product tankers controlled by BLT were arrested in Singapore.