Bumi says not extending debt moratorium

By Romel S. Gurky

IDX-listed coal giant PT Bumi Resources Tbk said Monday it has decided not to seek for an extension of debt moratorium which expired October 24, seen as an initial step toward restructuring of its debts.

Under the moratorium, granted by the Singapore court late last year, Bumi was not able to transfer any asset or perform any transactions with certain individuals, without the approval of the majority of its creditors, the company said in a statement to the Indonesia Stock Exchange.

Bumi is seeking to convert US$1.9 billion of its debts into equity in a proposed debt restructuring measure, which the company hopes to gain shareholders approval at an upcoming meeting in December, with the outlook that the debt restructure can start in January. A large chunk of the debts are owed to China Investment Corporation and China Development Bank.

Editing by Reiner Simanjuntak