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Glencore, Vitol To Help Bakrie Refinance Debt

Commodities trader Glencore and oil house Vitol are in talks to lend several hundred million dollars to Indonesia’s Bakrie family.

Commodities trader Glencore and oil house Vitol are in talks to lend several hundred million dollars to Indonesia’s Bakrie family, Financial Times reports. The loan will help refinance a $1.35 billion loan syndicated by Swiss bank Credit Suisse Group to several hedge funds. Glencore is expected to provide the majority of the refinancing. The Bakrie Group is likely to use the family holdings in 47 percent-owned Bumi Plc as collateral.

The restructuring of the debt comes after a drop of nearly 20 per cent in Bumi shares in the last month and an early recall of the Credit Suisse-led credit facility that also used Bakrie’s share of Bumi as collateral. Glencore is also urging Bakrie to give it rights to market the coal produced via several companies held by the Indonesian family.

Click here for the story from Financial Times.

Click here for additional coverage from Reuters.

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