ARMS reaches agreement with bondholders

By Ruli Setiawan

LSE-listed Asia Resource Minerals plc (ARMS) announced on Wednesday that it has reached in principle agreement with several parties regarding the terms of a restructuring of the 12.5% Guaranteed Senior Secured Notes due 2015 issued by Berau Capital Resources Pte Ltd and the 7.25% Guaranteed Senior Secured Notes due 2017 issued by PT Berau Coal Energy Tbk (BCE) (the ?Proposed Notes Exchange?)

The parties are certain persons holding (in aggregate) approximately 23.7% of the outstanding principal amount of the Notes (the "Steering Committee"); and

NR Holdings Limited (NRH) (a trust of which Nathaniel Rothschild is the principal beneficiary) and its advisors.

The Steering Committee was constituted from an informal working group of persons holding (in aggregate) approximately 50.6% of the outstanding principal amount of the Notes.

The Proposed Notes Exchange, together with the proposed raising of gross proceeds of US$100 million by the issue of new equity at a price of ?0.25 per share by ARMS by means of an open offer underwritten by NRH (the "Proposed Equity Offering") as previously announced on Feb. 9, 2015, constitute a comprehensive recapitalisation which would create a more stable capital structure for the benefit of all stakeholders.

Both the Proposed Notes Exchange and the Proposed Equity Offering remain (in all respects) subject to negotiation and execution of definitive documentation and the provision of all requisite approvals and consents. The Proposed Notes Exchange also requires the negotiation and agreement of a comprehensive term sheet that will be appended to an agreed form of lock-up and restructuring agreement in respect of the proposed transaction.

Editing by Johannes Simbolon