Bakrie Sued by U.S. Investors Over $380 Million in Bonds

Bakrie Telecom Pte and affiliates were sued in New York state court by investors who claim the company breached its contract involving a $380 million bond issue.

Investors holding more than 25 percent of outstanding notes said in a complaint filed yesterday that the defendants failed to pay interest due in November and May and have no plans to do so while they negotiate with a handpicked “steering committee” to restructure the debt.

“There is a high probability that defendants will exacerbate the default and fail to make the next payment due in November 2014,” the investors said in the complaint. It was filed by Geneva-based Universal Investments Advisory SA, San Antonio-based mutual fund Vaquero Master EM Credit Fund Ltd., and Jersey-based Trucharm Ltd. The notes mature in May 2015.

The company’s debt was downgraded to default by Standard & Poor’s and to a level signaling imminent default by Fitch Ratings Ltd. after failing to pay a $21.8 million coupon on a bond due in November.

Bakrie, based in Jakarta Selatan, Indonesia, didn’t immediately respond to an e-mail seeking comment on the lawsuit.

The case is Universal Investment Advisory SA v. Bakrie Telecom Pte Ltd., 652890/2014, New York State Supreme Court, New York County (Manhattan).