Indonesia's Bakrie property unit fails to pay $36m in debt
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Buy SPH photosJAKARTA (REUTERS) - Shares in Bakrieland Development were suspended on Monday after the Indonesian property firm failed to redeem a US$29 million (S$36 million) bond, the latest in a series of financial troubles for the Bakrie Group conglomerate.
The property company has yet to raise the necessary funds to pay the debt, which matured on Monday, it said in a statement to Indonesia's stock exchange. It is aiming to pay the debt by March 14.
Bakrieland, one of Bakrie Group's main units, has agreed to sell its toll road unit and one of its resort assets to MNC Group as it aims to reduce its debt by more than US$200 million this year, but the deal has not closed yet.
Bakrieland has 4.6 trillion rupiah (S$598 million) in debt, and more than a quarter will be due this year.
