Distressed Funds Try Mauritius Courts to Chase Indonesian Debts

Creditors Chase Indonesia Debt to Mauritius

Lock
This article is for subscribers only.

Holders of an Indonesian bank’s defaulted bonds have turned to a court on a tropical island 6,500 kilometers (4,039 miles) away to recoup the missed payments.

Two distressed debt funds owned by a Mauritius-registered firm operating in London and New York won a ruling on the island that ordered the new Japanese owner of PT Bank Mutiara to repay $112.5 million of bonds defaulted as far back as 2008. Tokyo-based J-Trust Co., which boughtBloomberg Terminal the bank last November, is facing claims totaling a third of the purchase price.