Bumi creditors delay debt restructuring vote

Creditors of IDX-listed coal giant PT Bumi Resources Tbk decided on Monday to delay voting on a debt restructuring proposal as some need longer time to complete verification of their claims.

William E. Daniel, a member of the Bumi debt restructuring committee, said that two creditors including China Development Bank and Country Forest Ltd (a subsidiary of China Investment Corporation) have proposed for the extension of the so-called debt payment postponement (PKPU) status of Bumi for another 95 days.

The two creditors account for about half of Bumi?s total outstanding debts estimated at Rp 96.9 trillion, much lower than Rp 146 trillion based on previous verification status.

Daniel added that some large creditors also require more time to make decision regarding the debt restructuring proposal.

Under a PKPU, a company will be given an opportunity to propose a debt settlement to all of its creditors, a restructuring process supervised by the court. If the company fails to obtain creditors' approval for the debt settlement proposal, the court will declare the company bankrupt. (*)