Indonesia’s first amended SOA restructure

Author: Brian Yap | Published: 5 Feb 2016

One of the world’s largest chemical tanker operators, Berlian Laju Tanker, has finally chugged out of choppy waters and into a safe berth four years after it ran into trouble amid the global recession.

Based in Jakarta and listed on the Indonesian and Singaporean stock exchanges, Berlian began to raise money from a group of banks and bond issuances in late 2011.  

With the banks holding security over most of its 72 vessels, which operated out of multiple jurisdictions including the US, Berlian was facing the prospect of its assets being arrested by renegade creditors.

"One of the risks that arose was the possibility of certain creditors seeking to arrest vessels and undermine the restructuring process," said Sushil Nair, partner at Drew & Napier.

The $2 billion restructuring process was complicated by the fact that each vessel pledged to the banks was owned by a single-purpose vehicle,...