Bumi proposes new debt restructuring scheme

IDX-listed coal giant PT Bumi Resources Tbk proposed Monday new schemes to restructure its combined US$3.98 billion including those owed to China Investment Corporation (CIC) and China Development Bank (CDB).

According to the new restructuring plan, which is a revised version of restructuring proposal made in April, submitted to the Indonesia Stock Exchange, $1.13 billion of the debts would be exchanged with new senior secured facility worth $1.2 billion, divided into two tranches, each worth $600 million and maturing in five years.

Meanwhile, $1.18 billion debts including those owed to CIC, CDB, and Castleford Investment Holdings Ltd would be converted into equities at Bumit and its subsidiaries.

Convertible bonds worth $410 million held by Enercoal Resources Pte Ltd will be exchanged with mandatory convertible bonds, with a tenor of five years and coupon of 6 percent.

Lastly, debt worth $100 million owed to Axis Bank would be repaid via proceeds to be raised from the sale of PT Fajar Bumi Sakti.

Bumi plans to meet with creditors again on October 15 to get inputs, and hoping to get approval October 22.

Editing by Reiner Simanjuntak