Indonesia ‘s Bakrie Group is selling a 23.8 percent stake in London-listed Bumi Plc, its venture with financier Nat Rothschild, to coal miner PT Borneo Lumbung Energi in a $1 billion deal to avoid a loan default. The deal with Borneo, which is backed by Indonesian businessman Samin Tan, would help Bakrie pay off the bulk of a $1.35 billion loan and extricate itself from a debt crunch that has weighed on the share price of one of the world’s largest coal exporters, Bumi Resources , following the 2008 financial crisis. The agreement between the Bakrie Group, run by one of Indonesia ‘s most powerful families, and Tan marks the second time in three years that the Bakrie family has had to scramble together a transaction to ease its debt. The deal was sealed after Swiss-based Glencore, the world’s largest diversified commodity trader, dropped out of talks on refinancing the Bakrie loan.
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