Glencore International PLC (GLEN.LN) is close to agreeing to lend $800-$900 million to Indonesia's PT Bakrie & Brothers (BNBR.JK) to help the holding company of Bakrie Group refinance debt of $1.35 billion and stave off a potential default, Reuters reported Thursday, citing sources with knowledge of the deal.
The deal involves Glencore receiving additional marketing rights on coal produced by Bakrie Group-controlled Bumi PLC (BUMI.LN). The loan will be backed by part of the Bakrie Group's 47% stake in the coal miner, the sources told Reuters.
Glencore will have the option of turning the loan into an equity stake in Bumi if Bakrie can't repay the debt, one source said, according to Reuters.
The agreement could be announced as early as Friday, another source said.
Bakrie and Glencore declined comment to Reuters.
Full story at http://www.reuters.com/article/2011/10/13/us-glencore-bakrie-idUSTRE79C4AK20111013
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