Standard Chartered, struggling to recoup a $1bn loan extended to one of Indonesia's richest men, has hit fresh trouble after a Jakarta court excluded it from a key creditor list and raised doubts over the validity of the underlying deal.
Reuters reports that Standard Chartered is recovering from heavy losses from commodities loans granted over the boom years. Many of the loans soured as prices tumbled to historic lows. In 2015, the lender sank to its first loss in almost three decades.
The $1bn loan was made to mining tycoon Samin Tan's coal firm, Borneo Lumbung Energi & Metal Tbk and was one of the bank's largest exposures to a single borrower, sources at the lender said. Backed by Tan's coal assets, it was approved in 2011, helping Tan buy out a rival billionaire's stake in the now defunct miner, Bumi Plc.
To access the complete Reuters article hit the link below: