Berlian Laju units' protection extended; preliminary scheme delivered

By Caroline Salls

Pittsburgh, July 5 - PT Berlian Laju Tanker Tbk.'s operating subsidiaries' creditor protection has been extended for three months from July 2 to give the company time to present a scheme of arrangement to creditors to deal with various group debts, according to a news release.

The protection was originally granted in March from the Singapore High Court. Berlian Laju Tanker said its major secured creditors support the extension.

In addition, the company said its Indonesian bondholder creditors have agreed not to take any action until July 30. This will allow Berlian Laju Tanker to present its proposals to them.

According to the release, the company delivered a preliminary restructuring plan to the court and its major secured lenders and will now begin working with its creditors to finalize the plan as quickly as possible.

Berlian Laju Tanker said the plan's immediate aim is a streamlined organization operating a younger fleet of fully stainless steel chemical tankers, as well as eight gas tankers and two oil tankers, all of which are employed on long-term time charter.

The company said it has restructured the corporate, operational and financial affairs of the group over the past months with the support of the major lenders and creditors its customer base.

Creditor action

Berlian Laju Tanker said Indonesian creditor Bank Mandiri has filed for a PKPU, which is similar to an application for a scheme of arrangement in Singapore.

The Indonesian action requires the company to present its restructuring plan for a creditor vote, with the company facing potential bankruptcy if it does not get the requisite majority of its creditors to accept the proposal.

Berlian Laju Tanker said it expects to move forward with the Indonesian and Singapore processes in tandem to the extent possible.

The company said it would have preferred to file for PKPU itself to streamline the processes.

Berlian Laju Tanker said it also believes that Bank Mandiri's application "is wrong under Indonesian law, and it is being challenged on that basis."

As previously reported, several PT Berlian Laju Tanker subsidiaries, including Chembulk New York Pte. Ltd., filed Chapter 15 bankruptcy cases on March 14 in the U.S. Bankruptcy Court for the Southern District of New York to seek foreign recognition of the Singapore proceedings.

The subsidiaries were granted U.S. recognition of proceedings last month.

Berlian Laju Tanker is a Jakarta, Indonesia-based shipping company. Chembulk is based in Cendex Centre, Singapore. The Chapter 15 case number is 12-11007.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.