Jun 10, 2011

Medco sells MIRA bond at discount

Oil and gas producer PT Medco Energi Internasional Tbk (MEDC), that is controlled by Panigoro family, finally sold defaulted guaranteed secured bond issued by a subsidiary of PT Mitra International Resources Tbk (MIRA) at US$35 million, reflecting a 48.68% discount from its initial size.
Medco sold the bond to Northern Edge Investment Ltd. But, no clear identity who is an investor behind Northern Investment. There is no sufficient data about Northern Investment if you check via Google search.  
Mitra Resources' subsidiary, Sabre System International Pte Ltd, issued US$68.2 million of the bond to Medco in 2008 as part of take over financing of PT Apexindo Pratama Dutra Tbk, oil drilling operator.
In June 2008, Medco disposed 48.72% stake in Apexindo to Mitra Resources for the consideration price of US$340.89 million. About US$272 million was paid in cash and US$68.2 million was settled by the bond issued by Sabre System and guaranteed by some shares in Mitra Resources.

Disclosure: No position at the stock mentioned above.  

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