Bumi in talks with CIC on $600m debt swap
Friday, April 15 2011 - 02:24 AM WIB
Indonesia-listed largest coal producer PT Bumi Resources said on Thursday that it was in talks with China Investment Corp on the possible swap of $600 million debt into equity the Jakarta globe reported.
?There are several options to swap it. It could be with Vallar?s shares, Bumi?s shares or BRM?s shares,? Bumi?s director Kenneth P. Farrell said. ?But it fully depends on CIC approval,? said Farrell
The Bakrie Group, including Bakrie & Brothers, and the Rothschild banking dynasty joined forces in November for Vallar to take a 25 percent stake in Bumi and a 75 percent stake in Berau Coal Energy. The Bakrie Group will own 43 percent in Vallar, which was renamed Bumi Plc on Tuesday.
Bumi has said its first priority was to repay a first tranche of $600 million in debt this October - two years earlier than scheduled - out of a total $1.9 billion it owes to China?s sovereign wealth fund. (*)