Bumi obtains creditors approval for CIC deal, pays coupon on bonds
Wednesday, June 11 2014 - 02:12 PM WIB
IDX-listed coal giant PT Bumi Resources Tbk announced Wednesday that it has obtained approval from creditors to complete a debt to equity conversion deal with China Investment Corporation (CIC).
The company also said in a filing with the Indonesia Stock Exchange that outstanding coupon on its US$300 million bonds maturing in 2016 have been paid today (Wednesday).
In October of last year, CIC agreed to convert a $1.357 billion debt owed by Bumi into shares in associated subsidiaries including 42 percent stake in IDX-listed mineral mining firm PT Bumi Resources Minerals Tbk, and 19 percent stake in coal miner PT Kaltim Prima Coal (KPC), and up to $150 million in new shares of Bumi.
Bumi obtained shareholder approval for the deb-to-equity swap in January of this year.
Bumi, Asia?s largest thermal coal exporter, had been aggressively making borrowings to finance expand drive, raising concerns over liquidity constraint and financial pressure amid falling commodity prices, sending down the price of its shares to historic lows.
By paying the overdue coupon on its 2016 bonds, Bumi has managed to avoid a default. ?The outstanding coupon has been paid today within the cure period,? Bumi said in a statement issued after the IDX halted trading in the company?s shares as the exchange sought information on the status of the coupon payment.
Editing by Reiner Simanjuntak