Asia/Pacific News
Chemical Shipper Gets Creditor Backing, Avoids Bankruptcy
Indonesian chemical shipper PT Berlian Laju Tanker (BLT) looks to have avoided bankruptcy today after creditors were reported to have backed the company's plan to restructure its $1.9 billion of debt.
Today's vote, which was the second on the matter after creditors rejected the proposal last Friday, comes just 4 days before Monday's expiration of a 75 day debt extension deadline.
"A deal has been reached with 100 percent of secured creditors voting for it," William Shia, head of Asian investments at BLT creditor Gramercy, told news agency Reuters shortly after the vote.
"The next step is for [BLT] to implement its plan."
Two lawyers representing creditors at the meeting said that as part of the deal, BLT will have to sell a number of its oil and chemical tankers to pay back some of its debt.
BLT chairman Hadi Surya said last October the company was under pressure from weak freight rates and higher bunker costs, and was switching its focus to niche liquid chemical and gas transport.
Problems for the firm were compounded by debt taken on to fund its $850 million acquisition of U.S.-based Chembulk in October 2007 at the peak of the shipping market.
