The Company wishes to provide an update on developments in the PKPU process that has been filed in the Jakarta Courts in relation to it.
At a meeting held in the Central Jakarta District Court ("Court") on 15 August 2012, an overwhelming 96% in value of the creditors of BLT voted in favour of an extension of the PKPU restructuring process in Indonesia, to allow discussions to continue with a view to achieving a successful restructuring of BLT's liabilities. This vote was subsequently sanctioned by the Court on 16 August 2012. As a result, the Company and its creditors have a further 90 days to work towards the reaching agreement on a consensual restructuring plan.
The PKPU process is being undertaken at the same time as restructuring action has been taken in Singapore in relation to a number of the operating subsidiaries of BL T. The Singapore Courts granted protection, under section 210(10) of the Singapore Companies Act, in relation to those subsidiaries and, on 2 July 2012, the Singapore High Court extended such protection for an additional 3 months. This extension was obtained with the approval of the major secured creditors, and is aimed at facilitating this restructuring process.
The existing restructuring initiatives being implemented to streamline and enhance BLT's fleet and operations continue and will be completed in the coming months. BLT's improved operating platform is delivering good results in what remains a challenging market.
BLT is working with its major international and local creditors in respect of the proposed restructuring terms, and this effort will continue with added urgency moving forward. BLT is appreciative of the cooperation and support it has received from a number of significant creditors. The proposed restructuring terms are based upon a fundamental analysis of forecast earnings having regard to each creditor's relative position including security rights, vessel earnings, currency and stipulated requirements.
Discussions with creditors are ongoing and it is BLT's desire and intention to bring them to a fair and acceptable conclusion as soon as possible so that a composition plan can be finalised and, with the creditors' approval, implemented.
The Company's major syndicate lenders recently emphatically confirmed their support for BLT' s restructuring including through the provision of a working capital to support important restructuring initiatives.