Bumi to complete revision of debt restructuring proposal mid-October
Thursday, September 29 2016 - 02:53 AM WIB
?The debtor (Bumi) is confident to come up with a new proposal in the middle of October because there are no significant changes,? said Imran Nating, a member of the Bumi debt restructuring committee, adding that creditors are also scheduled to vote on the new proposal mid-October.
As has been previously reported, China Development Bank (CBD), a major creditor of Bumi, has asked the company to revise its debt settlement proposal in light of the recent recovery in coal price.
Imran said that the required changes do not need to be specifically detailed in the proposal as Bumi has already included a cash waterflow scheme in the restructuring proposal, which means that debt installment will be made in line with the development of coal price.
Other creditors had previously called for a delay in the planned voting over the debt proposal to October 25 as they need more time to verify Bumi?s total debts following revelation that the company?s subsidiaries have started repaying some their debts to creditors such as Axis Bank, thus would reduce Bumi?s total debts.
As a consequence, the creditors had also asked the court for an extension of the company?s debt payment postponement (PKPU) status for another 30 days until October 27, 2016.
Bisnis Indonesia said that the court granted on Wednesday an extension until October 22.
Under a PKPU, a company will be given an opportunity to propose a debt settlement to all of its creditors, a restructuring process supervised by the court. If the company fails to obtain creditors' approval for the debt settlement proposal, the court will declare the company bankrupt. (*)