Bumi told to revise debt settlement proposal, PKPU status extended

China Development Bank (CBD), a major creditor of IDX-listed coal giant PT Bumi Resources Tbk, has asked the company to revise its debt settlement proposal.

This was said by Bumi lawyer Aji Wijaya on Tuesday following a meeting between the company and creditors. CBD, which has total claims of more than US$600 million has asked for the revision in relation to the proposed debt to equity conversion and debt installment following recent rise in coal price.

Meanwhile, other creditors have also 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 have also asked the court for an extension of the company?s debt payment postponement (PKPU) status for another 30 days until October 27, 2016.

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. (*)