Bakrie & Brothers proposes to restructure US$1.345B loan facility

PT Bakrie & Brothers Tbk is proposing to restructure its credit agreement worth US$1.345 billion with lenders. The loan facility is part of the share-swap agreement between PT Bakrie & Brothers Tbk, owner of Bumi Resources, and Vallar Investment UK Ltd.

?Bumi (Plc) has been informed that the facility will be due for repayment in the near future and that the borrowers are currently in discussions with a view to restructuring and/or repaying the facility,? Bumi Plc said in a statement.

Bumi Plc now controls two Indonesian major coal producers, PT Bumi Resources Tbk and PT Berau Coal Energy Tbk as a result of the share-swap agreement.

As disclosed in the prospectus published by Vallar on February 24, 2011 and Bumi Plc on June 17, 2011, PT Bakrie & Brothers Tbk and Long Haul Holdings Ltd entered in to a US$1.345 billion credit agreement.

The credit facility granted the lender (Vallar) a share pledge in the form of a mortgage over all of the ordinary shares that the borrowers hold in Bumi Resources. (romel)