Private Credit Funds Face Debt-Recovery Hurdles in Indonesia

The restructuring process for an embattled Indonesian media company is putting the spotlight on the struggle private lenders can face in recouping their money from borrowers in the country.

PT Visi Media Asia, controlled by the giant Bakrie Group, came up with a new restructuring proposal Tuesday, under which it would delay final repayment of the principal owed to a group of private credit funds by as much as 30 years. But the private lenders aren’t included on a list of verified creditors in the court-supervised restructuring process, meaning they cannot take part in any discussions on a possible ...