BLT slims down

Jan 31 2014

Indonesian oil and gas shipping company PT Berlian Laju Tanker (BLJ), which narrowly escaped bankruptcy last year, said on Thursday that it has cut its fleet size by 44% and will transfer a stake in its subsidiary to one of its creditors.

Since the cutbacks, BLT has a fleet of 55 tankers, down from 98 in 2011. The company said that it will maintain this level over the next two years even as it sees an improvement in its business due to rising global commodity prices, director Kevin Wong said at a news briefing, reported newswires.

BLT had struggled with weak freight rates and escalating fuel costs and finally reached a deal with its creditors in March last year to restructure its debt, averting the threat of bankruptcy.

The company’s current total debt is $2.1 bill and it said that it will transfer a 37% stake in Buana Listya Tamato to one of its creditors, Deutsche Bank, Wong said.

As part of the previously announced restructuring plan, BLT will have 10 years to repay $400 mill in bonds that were previously due in 2014 and $174 mill in bonds previously due in 2015, according to local reports. 

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