BUMI enters into agreement to settle remaining debt with CIC
Thursday, October 10 2013 - 01:13 AM WIB
IDX-listed biggest coal producer PT Bumi Resources Tbk (BUMI) said that it has entered into an agreement to settle US$ 1.3 billion principal amount of its remaining debt with China Investment Corporation (CIC).
BUMI Director and Corporate Secretary Dileep Srivastava said in a press statement received by Petromindo.com on Wednesday that a portion of the debt would be swapped into 42 percent of BUMI?s holdings in PT Bumi Resources Minerals Tbk. (BRMS), 19% of BUMI?s holdings in each of PT Kaltim Prima Coal (KPC), Indocoal Resources (Cayman) Ltd., and PT Indocoal Kaltim Resources, and up to $150 million in new shares of BUMI.
In addition, the residual amount will convert into a 3-year loan at a competitive market price, Srivastava said.
He said that BUMI will be taking steps to obtain necessary approvals as per applicable law and regulation and working to a final closure by this year end. He added that this settlement is expected to unlock value and accelerate growth in BUMI's resource assets, meet deleveraging objectives, strengthen capital structure and financials, opportunities and enable future funding on favorable terms. "BUMI is confident that the settlement will regain and enhance value to the company and its stakeholders," he ended.
Editing by Reiner Simanjuntak