Borneo seeks to restructure $350m debt
Monday, September 8 2014 - 01:17 AM WIB
IDX-listed coking coal producer PT Borneo Lumbung Energy & Metal Tbk is currently in negotiation with lender First Gulf Bank (FGB) to restructure a US$350 million debt amid the lingering drop in coal price.
The company said in a filing with the Indonesia Stock Exchange Friday that it wanted to switch the short term debt facility into a long-term facility with maturity of 5-7 years.
Borneo?s subsidiary PT Asmin Coalindo Tuhup (AKT) obtained the $350 million pre-export facility from FGB in December 2011, the amount of which is equal to about 85 percent of the company?s coking coal sales volume contract with Noble Resources International. The company, however, has found difficulties to properly repay the loan due to the lingering downturn in coal price, reports said.
Editing by Reiner Simanjuntak