ARMS, ACE enter into restructuring support agreement

By Ruli Setiawan

LSE-listed Asia Resource Minerals plc (ARMS) announced Friday that a restructuring support agreement was entered into on July 8 between the company, IDX-listed coal miner PT Berau Coal Energy Tbk, Berau Capital Resources Pte. Ltd, and Asia Coal Energy Ventures Limited (ACE), holders of approximately 24 percent in aggregate principal amount of the 2017 notes and holders of approximately 28 percent in aggregate principal amount of the 2015 notes.

Berau Capital is a subsidiary of ARMS and the issuer of the US$450 million 12.5 percent guaranteed senior secured notes due July 8, 2015, which are guaranteed by, amongst others, Berau and certain other subsidiaries of ARMS.

PT Berau is the issuer of the US$500 million 7.25 per cent. guaranteed senior secured notes due March 13, 2017 which are guaranteed by certain subsidiaries of ARMS.

ARMS said in a statement that the terms of the restructuring support agreement, among other things are:
? ARMS, PT Berau and Berau Capital have undertaken to progress the restructuring of the 2015 notes and the 2017 notes in accordance with the terms set out in the restructuring support agreement;
? each consenting creditor has undertaken to refrain from taking any enforcement action and has agreed to provide reasonable support and assistance to Pt Berau and ACE to prevent the occurrence of an insolvency event in respect of PT Berau or any of its subsidiaries; and
? ACE has undertaken to provide reasonable support and assistance to PT Berau and the consenting creditors to prevent the occurrence of an insolvency event in respect of PT Berau or any of its subsidiaries.

Each holder of 2015 notes and/or 2017 notes that accedes to the restructuring support agreement as an additional consenting creditor prior to july 17, 2015 will be eligible to receive:
? a consent fee in an amount equal to 0.2 percent of the aggregate principal amount of the supporting notes held by such additional consenting creditor at the calculation date; and
? an additional consent fee in an amount equal to 0.1 percent of the aggregate principal amount of the supporting notes held by such additional consenting creditor at the calculation date.

Editing by Reiner Simanjuntak