Indonesian shipper Berlian Laju defaults on debt instruments
04:46 AM Feb 29, 2012
SINGAPORE - Indonesian oil and gas shipping firm Berlian Laju Tanker said it has defaulted on six US dollar and local currency instruments and is in talks with its financial adviser on restructuring its debt.
The company has not made payments on the instruments after a debt restructuring and debt standstill announcement made on Jan 26, it said in a statement to the Singapore Exchange.
The instruments include two guaranteed convertible bonds of US$125 million (S$157 million) each on which it owes a total of US$44.1 million that was due on Feb 9. The other four are Indonesian rupiah instruments on which payments were due on Monday, it said. The company did not name its financial adviser.
Shipping companies have been hurt by high fuel costs and a slump in trade because of the global economic downturn that has suppressed rates. Many firms have reported losses and some have been forced to close or reduce their operations.
In last month's announcement, Berlian Laju had cited weak freight rates, as well as high bunker fuel costs and other operating costs which had "significantly impacted" its business and financial position. It estimated that about US$418 million in principle debt payments are due to be made this financial year. Dow Jones