The company is subject to the jursidiction of several courts, but restructuring is essential in order to avoid bankruptcy.
The Company previously announced on 5 October 2012 that some of its subsidiaries which had obtained protective orders from the Singapore High Court under section 210(10) of the Companies Act had the validity of those orders extended for a further 2 months.
At a hearing on 27 November 2012, the Singapore High Court granted a further extension of those orders until 10 January 2013. This extension was obtained with the support of several major secured creditors of the Company.
The extension granted by the Singapore High Court complements the ongoing PKPU process in Indonesia. As announced by the Company on 4 July 2012, the Company is currently involved in a PKPU process overseen by the Central Jakarta Commercial Court. The Company presented its restructuring plan to its creditors for them to consider and vote on last Friday 14 December at the Central Jakarta Commercial Court, with the Company facing potential bankruptcy if it the requisite majority of creditors do not vote in favour of the proposed plan.
Discussions with creditors have been productive and the Company envisages that its creditors will vote on a final restructuring plan in the PKPU process in late December 2012. If the requisite majority of the Company's creditors vote in favour of the restructu ring plan put forward by the Company, the Central Jakarta Commercial Court is expected to sanction the restructuring plan in early January 2013.
However, On 13 December 2012, a petition was filed against the Company in the United States Bankruptcy Court, under Chapter 11 of the United States Bankruptcy Code. The Chapter 11 process allows for a distressed company to reorganize under the supervision of the United States Bankruptcy Court.
The Chapter 11 petition was filed by Gramercy Distressed Opportunity Fund II LP, Gramercy Distressed Opportunity Fund Ltd. and Gramercy Emerging Markets Fund (the "Petitioners"). The Petitioners claim to be owners of a portion of the 7.5% Guaranteed Senior Notes Due 2014 which were issued in 2007 by BL T Finance BV (a subsidiary of the Company) and are guaranteed by the Company.
The Company nevertheless intends to forge ahead in its efforts to restructure its debts and continues to look forward to a successful restructuring being achieved within the framework of the PKPU process. At the same time, the Company is taking legal advice on the appropriate steps to be taken in view of the actions of the Petitioners, to ensure that the Company's efforts are not derailed.