Court approves Bumi debt restructuring deal

IDX-listed coal giant PT Bumi Resources Tbk announced that the Central Jakarta Commercial Court approved on Monday its debt restructuring agreement reached with creditors on November 9.

?By 28 November 2016, the panel of judges have rendered a court decision regarding the ratification of the Composition Agreement which has been approved by and between the company and the creditors,? Bumi said in a statement.

As has been previously reported, Bumi reached an agreement with creditors on November 9 to restructure its huge debts, the bulk of which to be converted into equity in the company.

Under the proposed debt to equity mechanism, about $1.81 billion debts owed to 11 creditors will be converted into a 39.9 percent stake in Bumi on June 30, 2017.

Other proposed restructuring mechanisms include the issuance of tradable contingent value rights worth $100 million, and issuance of mandatory convertible bonds worth $639 million.

Meanwhile, 32.24 percent of debt to China Development Bank, will be replaced with new senior secured facility and or new notes maturing in 2021, and the remainder replaced with tranche C facility.

Editing by Reiner Simanjuntak