The Financial Services Authority (OJK) urges MNC Investama (BHIT) to review its debt-to-equity swap program. BHIT plans to convert its debt of Rp1.94 trillion into 16.55 billion shares or equity. BHIT has signed agreement with Caravaggio Holdings Limited, New Ascend Limited, and Scotts Capital Investment Corporation, for realizing debt-to-equity swap before September 30, 2018.
BHIT has earlier proposed to issue 20.58 billion new shares, representing 29.9% of its enlarged capital, without preemptive rights scheme, priced at Rp115 per share. This action will boost BHIT shares to total 68.64 billion shares. While persistent regulation caps at maximum 10% shares offered without preemptive rights scheme in improving the company’s financial position.
BHIT wants to pay settle debt of Rp1.58 trillion with Caravaggio and New Ascend, and Rp355.15 billion debt with Scotts.